Desert Hot Springs City Council
March 7, 2023

City of Desert Hot Springs

ACTION MINUTES
City Council Meeting
6:00 PM - Tuesday, March 7, 2023
Council Chambers
CLOSED SESSION - 4:30 P.M.

CALL TO ORDER
Mayor Matas called the Closed Session to order at 4:30 P.M.

ROLL CALL

Present:

Council Members: Russell Betts, Gary Gardner, Jan Pye
Mayor Pro Tem: Roger Nuñez
Mayor: Scott Matas

PUBLIC COMMENTS
None.

Jennifer Mizrahi, City Attorney, announced the Closed Session Items.

CLOSED SESSION:

1. CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
(Paragraph (1) of subdivision (d) of Section 54956.9)
Name of case: City of Desert Hot Springs v. Cay, LLC (Riverside Superior Court Case No. CVPS2300272)

2. CONFERENCE WITH LABOR NEGOTIATORS
(Government Code section 54957.6)
Unrepresented employee: Interim City Manager

3. CONFERENCE WITH LABOR NEGOTIATORS
(Government Code section 54957.6)
Unrepresented employee: City Manager

City Council
March 7, 2023
PRESENTATIONS - 5:30 P.M.

Certificate Presented to John Hampson in Recognition of his Contributions to Desert Hot Springs AYSO
The presentation was continued to a future meeting.

REGULAR SESSION - 6:00 P.M.

CALL TO ORDER
Mayor Matas called the Regular Session to order at 6:00 P.M.

ROLL CALL

Present:

Council Members: Russell Betts, Gary Gardner, Jan Pye
Mayor Pro Tem: Roger Nuñez
Mayor: Scott Matas

INVOCATION
Councilmember Pye gave the Invocation.

PLEDGE OF ALLEGIANCE
Mayor Pro Tem Nuñez led the Pledge of Allegiance.

CITY ATTORNEY REPORT ON CLOSED SESSION
Jennifer Mizrahi, City Attorney, advised that the City Council: 1) voted 5-0 to approve a Waiver and Release Agreement between the City and Luke Rainey; and 2) voted 5- 0 to approve an Employment Agreement between the City and Doria Wilms to serve as Interim City Manager.

APPROVAL OF AGENDA
ACTION: Approve the March 7, 2023 Regular Meeting Agenda and approve the Consent Calendar in its entirety.

Moved by Mayor Pro Tem Nuñez
Seconded by Council Member Gardner
Carried 5-0 by the following votes:

AYES: Betts, Gardner, Pye, Nuñez, and Matas

City Council
March 7, 2023

PUBLIC COMMENTS
Robert Fuentes spoke regarding Little League and commended the City for its youth sports programs.

Tom Moen spoke regarding Highway 62 and Pierson Boulevard.

CITY MANAGER REPORT
Doria Wilms, Interim City Manager, introduced Travis Clark, Interim Community Development Director.

Daniel Porras, Interim Deputy City Manager, provided an update regarding Pierson Boulevard and Highway 62.

Geoffrey Buchheim, Administrative Services Director, provided a financial update.

Nicholas Haecker, Public Works Director, provided an update regarding various Public Works projects.

Roberta Crncic, Recreation and Community Services Director, provided Recreation Center updates and announcements.

MAYOR AND COUNCIL MEMBER REPORTS
Councilmember Betts reported on the various meetings and events he attended.

Councilmember Gardner reported on the various meetings and events he attended.

Mayor Pro Tem Nuñez reported on the various meetings and events he attended.

Councilmember Pye reported on the various meetings and events she attended.

Mayor Matas reported on the various meetings and events he attended.

PUBLIC HEARINGS:

4. An Ordinance Amending Operating Hours for Specific Cannabis Facilities (Exempt from CEQA Pursuant to CEQA Guidelines Section 15061 (b)(3)) Recommendation:
1) Staff Report;
2) Entertain questions of Staff from City Council;
3) Open the Public Hearing;
4) Take public testimony from those in favor;
5) Take public testimony from those opposed;

City Council
March 7, 2023
6) Take public testimony of those in a neutral position; 7) Close the Public Hearing;
8) City Council discussion and questions to Staff; and
9) That the Planning Commission recommends to the City Council that the City Council introduce for First Reading and read by title only, “An Ordinance of the City Council of the City of Desert Hot Springs, California, Amending Section

5.50.080 “General Operating Requirements” of Chapter 5.50 “Cannabis Businesses”; and Amending Sections 17.180.040 (“Marijuana Storefront Retail Facilities”), 17.180.045 (“Marijuana Non-storefront Retail Facilities”), 17.180.050 (“Marijuana Cultivation Facilities”), 17.180.060 (“Marijuana Manufacturing Facilities”), 17.180.070 (“Marijuana Testing Facilities”), and 17.180.080 (“Marijuana Distribution Facilities”) of the Desert Hot Springs Municipal Code to Update Regulations Regarding Hours of Operation."
Staff Report - SR-23-039 - Pdf
Christina Newsom, Compliance Director, presented the staff report.

Mayor Matas opened the Public Hearing.

There was no testimony.

Mayor Matas closed the Public Hearing.

ACTION: Approve Staff recommendation.

Moved by Council Member Betts
Seconded by Council Member Pye
Carried 5-0 by the following votes:

AYES: Betts, Gardner, Pye, Nuñez, and Matas

5. An Ordinance Amending the Desert Hot Springs Municipal Code to Update Regulations for Transfers of Ownership for Cannabis Businesses (Exempt from CEQA pursuant to CEQA Guidelines Section 15061 (b)(3)) Recommendation:
1) Staff Report
2) Entertain questions of Staff from the City Council;
3) Open the Public Hearing;
4) Take public testimony for those in favor;
5) Take public testimony from those opposed;
6) Take public testimony from those in a neutral position; 7) Close the Public Hearing; and
8) City Council discussion and questions to Staff; and
9) Introduce for First Reading and read by title only: “An Ordinance of the City Council of the City of Desert Hot Springs, California Amending Section 5.50 “Cannabis Businesses” of Title 5 “Business Licenses and Regulations” of the

City Council
March 7, 2023
Desert Hot Springs Municipal Code in Order to Update Regulations for Transfers of Ownership."
Staff Report - SR-23-040 - Pdf
Christina Newsom, Compliance Director, presented the staff report and responded to questions.

Mayor Matas opened the Public Hearing.

There was no testimony.

Mayor Matas closed the Public Hearing.

ACTION: Approve Staff recommendation.

Moved by Council Member Gardner
Seconded by Council Member Pye
Carried 5-0 by the following votes:

AYES: Betts, Gardner, Pye, Nuñez, and Matas

6. An Ordinance Amending Regulations to Mobile Food Vending Vehicles (Food Trucks) (Exempt from CEQA pursuant to CEQA Guidelines Section 15061 (b)(3))
Recommendation:
1) Staff Report
2) Entertain questions of Staff from the City Council;
3) Open the Public Hearing;
4) Take public testimony for those in favor;
5) Take public testimony from those opposed;
6) Take public testimony from those in a neutral position; 7) Close the Public Hearing;
8) City Council discussion and questions to Staff; and
9) Introduce for First Reading and read by title only: "An Ordinance of the City Council of the City of Desert Hot Springs, Amending Chapter 5.52 “Mobile Food Vending Vehicles” of Title 5 “Business Licenses and Regulations” of the Desert Hot Springs Municipal Code."
Staff Report - SR-23-041 - Pdf
Christina Newsom, Compliance Director, presented the staff report and responded to questions.

Mayor Matas opened the Public Hearing.

There was no testimony.

Mayor Matas closed the Public Hearing.

City Council
March 7, 2023
ACTION: Approve Staff recommendation.

Moved by Council Member Gardner
Seconded by Council Member Pye
Carried 5-0 by the following votes:

AYES: Betts, Gardner, Pye, Nuñez, and Matas
ADMINISTRATIVE CALENDAR:

7. Funding Request for a Public Art Installation at 11940 Palm Drive Recommendation:
1) Authorize the City Manager to negotiate, finalize, and execute agreements with the Parties (The Seventh Letter and Property Owner of 11940 Palm Drive, etc.) for the mural installation and exterior improvements in an amount not to exceed $84,000.
2) Authorize the City Manager to utilize an amount of up to $50,000 for mural site preparation and spectator improvements of 11940 Palm Dr. and surrounding area.

Staff Report - SR-23-045 - Pdf
Erick Becerril, Housing & Community Program Manager, presented the staff report.

Casey Zoltan, curator, and TRAV, artist, addressed the City Council and responded to questions.

Sam Shtockmaster, building owner, addressed the City Council and responded to questions.

A discussion ensued.

ACTION: Approve Staff recommendation.

Moved by Council Member Gardner
Seconded by Mayor Pro Tem Nuñez
Carried 4-0 by the following votes:

AYES: Gardner, Pye, Nuñez, and Matas

8. Resolution Authorizing the Extension of the Service Fee Collected on Behalf of the Riverside County Abandoned Vehicle Abatement Service Authority Until May 31, 2034
Recommendation:

Adopt a Resolution of the City Council of the City of Desert Hot Springs, California, authorizing the extension of the service fee collected on behalf of the Riverside County Abandoned Vehicle Abatement Service Authority until May 31, 2034.

City Council
March 7, 2023
Staff Report - SR-23-042 - Pdf
Christina Newsom, Compliance Director, presented the staff report and responded to questions.

ACTION: Approve Staff recommendation and adopt Resolution No. 2023-005.

Moved by Council Member Betts
Seconded by Mayor Pro Tem Nuñez
Carried 5-0 by the following votes:

AYES: Betts, Gardner, Pye, Nuñez, and Matas

9. City Branded Apparel for City Commissioners
Recommendation:

Discuss and provide direction to Staff.

Staff Report - SR-23-047 - Pdf
Jerryl Soriano, City Clerk, presented the staff report.

A discussion ensued.

There was no majority support to issue City branded apparel at this time. The matter was referred to the City Council Policy Committee for further review and will return to the City Council at a future meeting.

ACTION: continue
Moved by Council Member Betts
Seconded by Mayor Matas
Carried 4-1 by the following votes:

AYES: Betts, Gardner, Pye, and Matas
NOES: Nuñez
CONSENT CALENDAR:

10. City Council Special Meeting (Closed Session) Minutes: February 16, 2023; City Council Regular Meeting Minutes: February 21, 2023 Staff Report - SR-23-044 - Pdf
ACTION: Approved the Minutes as presented.

11. Contracts Management Report as of February 15, 2023 Staff Report - SR-23-038 - Pdf
ACTION: Received and filed.

City Council
March 7, 2023

PUBLIC COMMENTS
None.

ADJOURN
Mayor Matas adjourned the meeting at 7:43
Jerryl Soriano, CMC, City Clerk

SR-23-039
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: March 7, 2023
Department: Code & Cannabis Compliance
Prepared by: Christina Newsom, Compliance Director
Subject: An Ordinance Amending Operating Hours for Specific Cannabis Facilities (Exempt from CEQA Pursuant to CEQA Guidelines Section 15061 (b)(3)) RECOMMENDATION:
1) Staff Report;
2) Entertain questions of Staff from City Council;
3) Open the Public Hearing;
4) Take public testimony from those in favor;
5) Take public testimony from those opposed;
6) Take public testimony of those in a neutral position; 7) Close the Public Hearing;
8) City Council discussion and questions to Staff; and
9) That the Planning Commission recommends to the City Council that the City Council introduce for First Reading and read by title only, “An Ordinance of the City Council of the City of Desert Hot Springs, California, Amending Section 5.50.080 “General Operating Requirements” of Chapter 5.50 “Cannabis Businesses”; and Amending Sections 17.180.040 (“Marijuana Storefront Retail Facilities”), 17.180.045 (“Marijuana Non-storefront Retail Facilities”), 17.180.050 (“Marijuana Cultivation Facilities”),

17.180.060 (“Marijuana Manufacturing Facilities”), 17.180.070 (“Marijuana Testing Facilities”), and

17.180.080 (“Marijuana Distribution Facilities”) of the Desert Hot Springs Municipal Code to Update Regulations Regarding Hours of Operation."
BACKGROUND:

Chapter 5.50 of the Desert Hot Springs Municipal Code (“DHSMC”) provides the regulatory framework for the operation of cannabis facilities, including the hours of operation.

Section 5.50.080(L) of the DHSMC currently limits the hours of operation of all cannabis facilities to the hours of 8:00 a.m. and 10:00 p.m.

Sections 17.180.040 through 17.180.080, inclusive of the Zoning Code, provide the regulatory framework for the operation of Cannabis Storefront Retail, Cannabis Non-Storefront Retail, Cannabis Cultivation, Cannabis Manufacturing, Cannabis Testing, and Cannabis Distribution facilities (collectively Cannabis Facilities”). Chapter 17.180 regulations currently do not address the hours of operation for the Cannabis Facilities.

SR-23-039
DISCUSSION:

The proposed ordinance seeks to amend Chapter 5.50 to update operating hours for specific Cannabis Facilities. Cannabis Facility owners and operators have approached the City seeking review of the operating hours for Cannabis Facilities located in a Light Industrial (I-L) District. In particular the following are the logistical issues facing the Cannabis Facilities:

1. Cultivation Facilities:

A) Cultivation facilities require twenty-four-hour operation due to the volatility of the cannabis plants at the cultivation stage.

B) Certain adverse conditions, such as an infestation of pests or faulty electricity may wipe out an entire crop of cannabis plants if they are not corrected immediately.

C) Common indoor cultivation techniques including the hydroponic and aeroponic techniques, which replace the use of soil and instead, provide nutrients to the plants through a water or mist solution, require meticulous and precise attention to ensure the plant is receiving the necessary nutrients to blossom.

2. Testing Facilities:

A) Testing facilities test the raw products for any chemical contaminants or microbiological impurities.

B) Twenty-four-hour operations are necessary to immediately dispose of contaminated products and prevent the spread to other products at the facility.

3. Cannabis Distribution Facilities:

A) Cannabis distributors deliver the product at each stage in the production process.

B) Distributors receive the product from the cultivation facilities and deliver it to the testing facilities and then deliver the tested product to the manufacturer.

C) Each and every reason that makes it necessary for manufacturing, testing, and cultivation facilities to operate twenty-four hours per day will consequently apply to the distribution facilities as well; and

4. Cannabis Manufacturing Facilities:

A) An increase in production at the cultivation, testing and distribution facilities would potentially cause a larger amount of raw product to reach manufacturing facilities, where the cannabinoids are extracted from the plants and packaged into the final product.

B) This would necessitate manufacturing facilities to operate twenty-four hours per day to minimize the time that raw products are exposed to the environment, thus risking reduced quality, or allowing the plant to dry out; and

SR-23-039
These realities reflect a need for cultivation, manufacturing, testing and distribution facilities to operate up to twenty-four hours per day. In order to balance these realties with the needs of the public, the proposed Ordinance would amend current regulations to allow only cannabis cultivation, testing, distribution, and manufacturing facilities located within light industrial districts to operate up to twentyfour hours per day while minimizing overnight noise.

FISCAL IMPACT:

None.

ENVIRONMENTAL ANALYSIS:

The following ordinance is categorically exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15061(b)(3) because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.

ATTACHMENTS:

Exhibit 1: Ordinance - Cannabis Hours of Operation

ORDINANCE NO. ______

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DESERT
HOT SPRINGS AMENDING SECTION 5.50.080 “GENERAL OPERATING REQUIREMENTS” OF CHAPTER 5.50 “CANNABIS BUSINESSES” OF
TITLE 5 “BUSINESS LICENSES AND REGULATIONS” OF THE
DESERT HOT SPRINGS MUNICIPAL CODE; AND AMENDING
SECTIONS 17.180.040 (“MARIJUANA STOREFRONT RETAIL
FACILITIES”), 17.180.045 (“MARIJUANA NON-STOREFRONT RETAIL FACILITIES”), 17.180.050 (“MARIJUANA CULTIVATION FACILITIES”),

17.180.060 (“MARIJUANA MANUFACTURING FACILITIES”),

17.180.070 (“MARIJUANA TESTING FACILITIES”), AND 17.180.080 (“MARIJUANA DISTRIBUTION FACILITIES”) OF TITLE 17 “ZONING”

OF THE DESERT HOT SPRINGS MUNICIPAL CODE TO UPDATE

REGULATIONS REGARDING HOURS OF OPERATION
WHEREAS, Chapter 5.50 “Cannabis Businesses,” of the Desert Hot Springs Municipal Code (“DHSMC”) among other things, sets forth the General Operating Requirements for all cannabis facilities located within the City of Desert Hot Springs; and WHEREAS, section 5.50.080(L) of the DHSMC currently limits the hours of operation of all cannabis facilities to the hours of 8:00 a.m. and 10:00 p.m.; and WHEREAS, Chapter 17.180 of the DHSMC sets forth zoning regulations and operating requirements of cannabis facilities, including section 17.180.040 for storefront retail facilities, section 17.180.045 for non-storefront retail facilities; section 17.180.050 for cultivation facilities, section 17.180.060 for manufacturing facilities, section

17.180.070 for testing facilities, and section 17.180.080 for distribution facilities (collectively, the “Chapter 17.180 Regulations”); and
WHEREAS, the Chapter 17.180 Regulations currently do not address the hours of operation for the storefront retail, non-storefront retail, cultivation, manufacturing, testing, or distribution facilities; and
WHEREAS, for cultivation facilities:
a) Cultivation facilities require twenty-four-hour operation due to the volatility of the cannabis plants at the cultivation stage.

b) Certain adverse conditions, such as an infestation of pests or faulty electricity may wipe out an entire crop of cannabis plants if they are not corrected immediately.
c) Further, common indoor cultivation techniques including the hydroponic and aeroponic techniques, which replace the use of soil and instead, provide nutrients to the plants through a water or mist solution, require meticulous and precise attention to ensure the plant is receiving the necessary nutrients to blossom; and

WHEREAS, for testing facilities:
a) Testing facilities test the raw products for any chemical contaminants or microbiological impurities.
b) Twenty-four-hour operations are necessary to immediately dispose of contaminated products and prevent the spread to other products at the facility; and
WHEREAS, for cannabis distribution:
a) Cannabis distributors deliver the product at each stage in the production process.
b) Distributors receive the product from the cultivation facilities and deliver them to the testing facilities and then deliver the tested product to the manufacturer.
c) Each and every reason that makes it necessary for manufacturing, testing, and cultivation facilities to operate twenty-four hours per day will consequently apply to the distribution facilities as well; and WHEREAS, for manufacturing facilities:
a) an increase in production at the cultivation, testing and distribution facilities would potentially cause a larger amount of raw product to reach manufacturing facilities, where the cannabinoids are extracted from the plants and packaged into the final product.
b) This would necessitate manufacturing facilities to operate twenty-four hours per day to minimize the time that raw products are exposed to the environment, thus risking reduced quality or allowing the plant to dry out; and
WHEREAS, these realities reflect a need for cultivation, manufacturing, testing and distribution facilities to operate up to twenty-four hours per day; and WHEREAS, in order to balance these realties with the needs of the public, the City Council desires to amend current regulations to allow only cannabis cultivation, testing, distribution, and manufacturing facilities located within light industrial districts to operate up to twenty-four hours per day while minimizing overnight noise; and WHEREAS, the City Council finds that this Ordinance promotes the efficient operations of cannabis facilities while at the same time minimizing any undue disruptions to residential areas; and
WHEREAS, the City Council finds that the adoption of this ordinance is categorically exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15061(b)(3) because it can be

seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment; and
WHEREAS, the City Council finds that this Ordinance is consistent with the General Plan; and
WHEREAS, the City Council finds that the passage of this Ordinance is in the best interest of the public interest, health, safety, convenience, and welfare.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DESERT HOT SPRINGS DOES ORDAIN AS FOLLOWS:

Section 1. RECITALS
That the foregoing recitals are true and correct and are herein adopted by this reference.

Section 2. AMENDING SECTION 5.50.080 (“GENERAL OPERATING REQUIREMENTS”) OF CHAPTER 5.50 (“CANNABIS
BUSINESSES”) OF TITLE 5 (“BUSINESS LICENSES AND
REGULATIONS”) OF THE DESERT HOT SPRINGS MUNICIPAL
CODE
Section 5.50.050 (“General Operating Requirements”) of Chapter 5.50 (“Cannabis Businesses”) of Title 5 (“Business Licenses and Regulations”) of the Desert Hot Springs Municipal Code is hereby amended to read as follows:

5.50.080 General Operating Requirements
All cannabis facilities must comply with the requirements set forth in this section.

A. Every cannabis facility shall operate in compliance with all applicable state and local laws and regulations governing cannabis facilities.

B. Every cannabis facility shall maintain and regularly update a roster of responsible persons, employees, independent contractors, and any other person engaged in the operation of the cannabis facility. The roster must include a copy of the individuals’ City-issued cannabis identification card, date of hire, and contact information.

The roster shall be made available for inspection or copying by the City Manager or designee upon written or oral request. Notwithstanding anything to the contrary in this section, the cannabis facility shall immediately notify the City of any new or different responsible persons, employees, independent contractors, and any other person engaged in the operation of the cannabis facility in order to conduct a background check under Section 5.50.050.

C. No person who is less than 21 years of age may be employed or otherwise engaged in the operation of a cannabis facility.

D. Cannabis and cannabis goods possessed by a cannabis facility shall be kept and stored in a secured manner at all times.

E. On-site smoking, ingestion, or consumption of cannabis shall be prohibited on the premises of all cannabis facilities. “Premises,” for purposes of this section, includes the actual building as well as any accessory structures, common areas and parking areas.

F. Cannabis facilities shall not sell, provide, store, or distribute any alcoholic beverages or tobacco products, or allow such products to be consumed on the premises.

G. Cannabis facilities shall not advertise in a manner intended to encourage persons under 21 years of age to consume cannabis or cannabis goods.

H. Each cannabis facility shall display a copy of its cannabis facilities regulatory permit issued pursuant to this chapter in a conspicuous place at or near the entrance to the premises.

I. Cannabis facilities shall not permit a physician to evaluate potential medicinal cannabis patients or to provide a physician’s recommendation for medicinal cannabis within its premises. Cannabis facilities shall not offer or provide any form of remuneration to a physician who provides physician’s recommendations for medicinal cannabis.

J. Waste Disposal. Disposal of chemical, dangerous or hazardous waste must be conducted in a manner consistent with federal, state and local laws, regulations, rules or other requirements. This may include, but is not limited to, the disposal of all pesticide or other chemicals used in the cultivation process, certain solvents or other chemicals used in the production of cannabis concentrate.

K. Each cannabis facility must ensure that its licensed premises are maintained in a sanitary manner and activities on its licensed premises are conducted in a sanitary manner.

L. Cannabis facilities are not authorized to sublet any portion of their premises for any purpose, unless all necessary applications to modify the existing premises to accomplish any subletting have been approved by the City.

M. Hours. All cannabis facilities may only be open between the hours of 8:00 a.m. and 10:00 p.m. and may operate as often as seven days per week. Hours of Operation. Except as otherwise provided in Chapter 17.180 of this code, cannabis facilities may operate only between the hours of 8:00 a.m. and 10:00 p.m. and up to seven days per week.

N. If consumable cannabis goods (including, but not limited to, lollipops, brownies, cookies, ice cream, etc.) are present on-site or offered for distribution, then the cannabis facility shall secure any approval from the County of Riverside Department of Health Services required for handling food products.

O. Cannabis facilities shall have an electronic point of sale system that produces historical transactional data for review by the City Manager or designee for auditing purposes.

P. Odor Control. Cannabis facilities shall provide a sufficient odor absorbing ventilation and exhaust system so that odor generated inside the cannabis facility that is distinctive to its operation is not detected outside the cannabis facility, anywhere on adjacent property or public rights-of-way, on or about any exterior or interior common area walkways, hallways, breezeways, foyers, lobby areas, or any other areas available for common use by tenants or the visiting public, or within any other unit located within the same building as the cannabis facility. As such, cannabis facilities must install and maintain the following equipment or any other equipment which the City Manager or designee determines has the same or better effectiveness:

1. An exhaust air filtration system with odor control that prevents internal odors from being emitted externally; or

2. An air system that creates negative air pressure between the cannabis facility’s interior and exterior so that the odors generated inside the cannabis facility are not detectable outside the cannabis facility.

A violation of this subsection by any cannabis facility located within an Industrial District shall be excused so long as the odor is not detectable more than 150 feet beyond the cannabis facility’s property line.

Q. Each cannabis facility shall provide the City Manager or designee with the name, phone number, facsimile number, and email address of an on-site community relations or staff person or other representative to whom the City can provide notice if there are operating problems associated with the cannabis facility or refer members of the public who may have any concerns or complaints regarding the operation of the cannabis facility. Each cannabis facility shall also provide the above information to its business neighbors located within 100 feet of the cannabis facility as measured in a straight line without regard to intervening structures, between the front doors of each establishment.

R. Create and maintain an active account within the state’s track and trace system required by Business and Professions Code Section 26067 prior to commencing any commercial cannabis activity. In the event of system failure, the cannabis facility shall keep a hard copy record and transfer the information to the track and trace system within 24 hours of the system being available.

S. Cannabis facilities must pay all applicable taxes pursuant to Federal, State, and local law, including, but not limited to, the cannabis tax required by Title 3, State and local sales and use taxes, and State excise taxes.

T. Cannabis facilities shall fully comply with all applicable provisions of the Medicinal and Adult-Use Cannabis Regulation and Safety Act (California Business and Professions Code Sections 26000 through 26211), Compassionate Use Act of 1996, the Medical Marijuana Program Act, the 2008 Attorney General Guidelines, all applicable

provisions of this code, and any specific, additional operating procedures and measures as may be imposed as conditions of approval of the regulatory permit.

U. Cannabis facilities shall create and maintain records of daily sign-in logs for all responsible person, employee, independent contractor, or any other person who will be engaged in the operation of the cannabis facility. A minimum of 30 days of daily signin logs shall be provided to the City Manager or designee upon a verbal or written request.

V. The City Manager or designee may impose reasonable terms and conditions on the proposed operations of the cannabis facility in addition to those specified in this chapter.

Section 3. AMENDING SECTION 17.180.040 (“MARIJUANA STOREFRONT RETAIL FACILITIES”) OF CHAPTER 17.180 (“MARIJUANA
FACILITIES OPERATION AND LOCATION”) OF TITLE 17
“ZONING” OF THE DESERT HOT SPRINGS MUNICIPAL CODE
Section 17.180.040 (“Marijuana Storefront Retail Facilities”) of Chapter 17.180 (“Marijuana Facilities Operation And Location”) of Title 17 (“Zoning”) of the Desert Hot Springs Municipal Code is hereby amended to read as follows:

17.180.040 Marijuana storefront retail facilities.

A. Permitted Locations. Marijuana storefront retail facilities shall only be located in any Commercial District in the City.

B. Number of Plants. Storefront retail facilities shall not cultivate more than 99 mature flowering marijuana plants on site at any one time.

C. Conditional Use Permit/Regulatory Permit Required. Storefront retail facilities shall obtain both a City-issued Conditional Use Permit and Regulatory Permit.

D. Approved storefront retail facilities operating with a City-approved Conditional Use Permit and in compliance with all local and State laws may, at their discretion, add a light manufacturing use and also become a light manufacturing facility to their current storefront retail facility.

E. Approved storefront retail facilities operating with a City-approved Conditional Use Permit and in compliance with all local and State laws may, at their discretion, add a light distribution use to their current storefront retail facility.

Any and all light distribution uses must comply with all of the following:

1. Facility must have separate employee only loading door towards the rear of the building. Loading door shall not be located on the same building frontage as the public access door.

2. A maximum number of 1 unmarked vehicle shall be used to distribute products.

3. The vehicle mentioned above must have a designated and marked parking space, which space must be in close proximity to the required loading door.

4. All State and local laws and regulations must be complied with at all times.

F. Hours of Operation. All marijuana storefront retail facilities operating in any district may only operate between the hours of 8:00 a.m. and 10:00 p.m. and may operate up to seven days per week.

F.G. Notwithstanding subsection C above, any and all light manufacturing facilities must comply with applicable State law and regulations, including the California Environmental Quality Act (“CEQA”).

G.H. Storefront retail facilities must comply with all local and State laws as it pertains to such use at all times, which certain applicable laws are currently set forth in Title 16 Code of Regulations, Sections 5400 through 5413, as may be amended.

Section 4. AMENDING SECTION 17.180.045 (“MARIJUANA NONSTOREFRONT RETAIL FACILITIES”) OF CHAPTER 17.180 (“MARIJUANA FACILITIES OPERATION AND LOCATION”) OF
TITLE 17 “ZONING” OF THE DESERT HOT SPRINGS

MUNICIPAL CODE
Section 17.180.045 (“Marijuana Non-Storefront Retail Facilities”) of Chapter

17.180 (“Marijuana Facilities Operation and Location”) of Title 17 (“Zoning”) of the Desert Hot Springs Municipal Code is hereby amended to read as follows:

17.180.045 Marijuana non-storefront retail facilities.

A. Permitted Locations. Marijuana non-storefront retail facilities shall only be located in any Industrial District in the City.

B. Number of Plants. Non-storefront retail facilities shall not cultivate more than 99 mature flowering marijuana plants on site at any one time.

C. Conditional Use Permit/Regulatory Permit Required. Non-storefront retail facilities shall obtain both a City-issued Conditional Use Permit and Regulatory Permit, except as otherwise herein allowed in subsection D.

D. Administrative Approval. A duly approved manufacturing facility and/or distribution facility, with a duly approved Conditional Use Permit and Regulatory Permit, and in good standing with the City, may request modification of the already approved Conditional Use Permit to operate a non-storefront retail facility provided the Director of Community Development, or designee, finds all of the following:

1. There is a 10% or less than deviation to each of the following:

a. On-site circulation and parking, loading and landscaping; b. Placement and/or height of walls and fences;
c. Exterior architectural features, including colors, and/or modification of finished materials that do not alter or compromise the previously approved theme;
d. The density or intensity of a development project;
e. Paving; and
f. Hours of operation.

2. The marijuana manufacturing and/or distribution facility and its nonstorefront retail facility use is consistent with the goals, objectives, policies and programs of the general plan.

3. The marijuana manufacturing and/or distribution facility and its nonstorefront retail facility use complies with all applicable zoning and other regulations.

4. The marijuana manufacturing and/or distribution facility and its nonstorefront retail facility use will not be detrimental to the public health, safety or welfare or materially injurious to properties or improvements in the vicinity.

5. The location, design and operation of the marijuana manufacturing and/or distribution facility and its non-storefront retail facility use will be compatible with existing and planned land uses in the vicinity.

6. Any project contemplating this Administrative Approval must comply with the California Environmental Quality Act (“CEQA”), and any and all applicable State and local laws and regulations. If CEQA is in fact implicated, as so determined by the Director of Community Development, CEQA must be adhered to, as so required by law.

Applications for a modification of a Conditional Use Permit under this section shall be on a form prescribed by the Director and shall be filed with the Department, pursuant to Chapter 17.68 (Applications and Fees) and must be approved by the Director, or his or her designee, who may establish additional conditions to further the intent of this section. Any modification request which exceeds the prescribed limitations outlined in this section shall comply with requirements set forth in Section 17.180.060(B)(2). Minor modifications shall not apply when a nonconforming use, structure or site is involved. Marijuana manufacturing and/or distribution facility applications under this section may be referred to the planning commission at the discretion of the Director.

E. Non-storefront retail facilities shall not deliver to customers within the City limits.

F. Non-storefront retail facilities may also manufacture and/or distribute marijuana, as so allowed with a Conditional Use Permit.

G. Hours of Operation. All marijuana non-storefront retail facilities operating in any permissible district may only operate between the hours of 8:00 a.m. and 10:00 p.m. and may operate up to seven days per week.

G.H. Non-storefront retail facilities must comply with all local and State laws as it pertains to such use at all times, which certain applicable laws are currently set forth in Title 16 Code of Regulations, Sections 5414 through 5427, as may be amended.

Section 5. AMENDING SECTION 17.180.050 (“MARIJUANA CULTIVATION FACILITIES”) OF CHAPTER 17.180 (“MARIJUANA FACILITIES
OPERATION AND LOCATION”) OF TITLE 17 “ZONING” OF THE

DESERT HOT SPRINGS MUNICIPAL CODE
Section 17.180.050 (“Marijuana Cultivation Facilities”) of Chapter 17.180 (“Marijuana Facilities Operation and Location”) of Title 17 (“Zoning”) of the Desert Hot Springs Municipal Code is hereby amended to read as follows:

17.180.050 Marijuana cultivation facilities.

A. Permitted Locations. Marijuana cultivation facilities involving the cultivation of more than 99 mature flowering marijuana plants shall only be located in any Industrial District in the City.

B. Interior Only. Marijuana cultivation shall be conducted only in the interior of fully enclosed structures, facilities, buildings, or other fully enclosed spaces consistent with the purpose and intent of this chapter. No marijuana cultivation operations, including harvesting and growing plants at any stage, shall be visible from any public right-of-way.

C. Permits. Marijuana cultivation facilities shall obtain a City-issued Conditional Use Permit and Regulatory Permit.

D. Hours of Operation. All marijuana cultivation facilities located in any Light Industrial (I-L) District may operate up to twenty-four hours per day and up to seven days per week.

E. Noise. Any marijuana cultivation facility located in a Light Industrial (I-L) District must, at all times, comply with all applicable noise regulations, including, but limited to, Chapter 8.12 of this code.

Section 6. AMENDING SECTION 17.180.060 (“MARIJUANA
MANUFACTURING FACILITIES”) OF CHAPTER 17.180
(“MARIJUANA FACILITIES OPERATION AND LOCATION”) OF
TITLE 17 “ZONING” OF THE DESERT HOT SPRINGS

MUNICIPAL CODE

Section 17.180.060 (“Marijuana Manufacturing Facilities”) of Chapter 17.180 (“Marijuana Facilities Operation and Location”) of Title 17 (“Zoning”) of the Desert Hot Springs Municipal Code is hereby amended to read as follows:

17.180.060 Marijuana manufacturing facilities.

A. Permitted Locations. Marijuana manufacturing facilities shall only be located in any Industrial District in the City, subject to the regulations set forth in this chapter and any additional regulations as may be promulgated hereunder by an ordinance or resolution of the City Council or otherwise pursuant to this chapter.

B. Permits.

1. Marijuana Manufacturing—Administrative Approval. A duly approved marijuana cultivation facility, with a duly approved Conditional Use Permit and Regulatory Permit, may request modification of the already approved Conditional Use Permit to operate a marijuana manufacturing facility provided the Director of Community Development, or designee, finds all of the following:
a. There is a 10% or less than deviation to each of the following:
i. On-site circulation and parking, loading and landscaping, ii. Placement and/or height of walls and fences,
iii. Exterior architectural features, including colors, and/or modification of finished materials that do not alter or compromise the previously approved theme,
iv. The density or intensity of a development project,
v. Paving, and
vi. Hours of operation;
b. The marijuana cultivation facility and its manufacturing use is consistent with the goals, objectives, policies and programs of the General Plan;
c. The marijuana cultivation facility and its manufacturing use complies with all applicable zoning and other regulations;
d. The marijuana cultivation facility and its manufacturing use will not be detrimental to the public health, safety or welfare or materially injurious to properties or improvements in the vicinity;
e. The location, design and operation of the marijuana cultivation facility and its manufacturing use will be compatible with existing and planned land uses in the vicinity;
f. Any project contemplating this Administrative Approval must comply with the California Environmental Quality Act (“CEQA”), and any and all

applicable State and local laws and regulations. If CEQA is in fact implicated, as so determined by the Director of Community Development, CEQA must be adhered to, as so required by law.

Applications for a modification of a Conditional Use Permit under this section shall be on a form prescribed by the Director and shall be filed with the Department, pursuant to Chapter 17.68 (Applications and Fees) and must be approved by the Director, or designee, who may establish additional conditions to further the intent of this section. Any modification request which exceeds the prescribed limitations outlined in this section shall comply with requirements set forth in subsection (B)(2). Minor modifications shall not apply when a nonconforming use, structure or site is involved. Marijuana manufacturing facility applications under this section may be referred to the planning commission at the discretion of the Director.

2. Marijuana Manufacturing Facilities Not Operating Within a Duly Existing Marijuana Cultivation Facility. Marijuana manufacturing facilities which are not operated within an existing and duly approved marijuana cultivation facility or which results in any additional impact or expansion of use or structure(s) shall obtain a City-issued Conditional Use Permit and Regulatory Permit.

C. Interior Only. Marijuana manufacturing shall be conducted only in the interior of fully enclosed structures, facilities, buildings, or other fully enclosed spaces consistent with the purpose and intent of this chapter. No marijuana manufacturing shall be visible from any public right-of-way.

D. Operational Requirements.

1. Manufacturers are limited to certain equipment, methods, solvents, gases and mediums when creating marijuana extracts.

2. Manufacturing facilities with a State license of a Type-6 (non-volatile) or a Type 7 (volatile) classification may be allowed to operate under this chapter.

3. All other methods of extraction shall be conducted in an environment appropriate to the solvent being used, with consideration to proper ventilation and ignition source controls.

4. All equipment, systems and manufacturing processes must meet or exceed all applicable State and Federal requirements and regulations regarding air, water, health and safety, and handling, processing and storage of hazardous materials, solvents, gases and waste. No manufacturing facility shall commence operations or be issued any form of certificate of occupancy without first obtaining all required fire, environmental, health and safety, planning, and building certificates, permits and approvals required under City’s Municipal Code and all other applicable County, State and Federal regulations.

E. Hours of Operation. All marijuana manufacturing facilities located in any Light Industrial (I-L) District may operate up to twenty-four hours per day and up to seven days per week.

F. Noise. Any marijuana manufacturing facility located in a Light Industrial (I-L) District must, at all times, comply with all applicable noise regulations, including, but limited to, Chapter 8.12 of this code.

E.G. Chemical Engineer. As a condition of obtaining a City-issued marijuana Regulatory Permit and Conditional Use Permit, a licensee of a manufacturing facility desiring to operate under this chapter shall first verify that the licensee employs or contracts with a person who has a B.S. in chemical engineering from an accredited school who shall supervise the design, installation and operation of the facility’s systems and manufacturing processes. Such person shall inspect the premises on a quarterly basis and provide such inspection report to the City. The licensee shall submit to the City a written statement that he or she certifies under penalty of perjury that the name of the employee/contractor is true and correct. The employee/contractor shall also submit a written statement that he or she certifies under penalty of perjury his or her educational qualifications and verifying that he or she is employed or contracted to supervise the design, installation and operation of the facility’s systems and manufacturing processes.

F.H. State Regulations. In the event the State of California implements health and safety regulations applicable to marijuana manufacturing facilities, upon implementation of such State regulations, all marijuana manufacturing facilities operators shall immediately implement the State regulations. Should the City’s regulations be stricter than the State regulations, the marijuana manufacturing facility shall use the City’s regulation. The City reserves all rights it has with implanting its own local regulations.

Section 7. AMENDING SECTION 17.180.070 (“MARIJUANA TESTING FACILITIES” OF CHAPTER 17.180”) (“MARIJUANA FACILITIES
OPERATION AND LOCATION”) OF TITLE 17 “ZONING” OF THE

DESERT HOT SPRINGS MUNICIPAL CODE
Section 17.180.070 (“Marijuana Testing Facilities”) of Chapter 17.180 (“Marijuana Facilities Operation and Location”) of Title 17 (“Zoning”) of the Desert Hot Springs Municipal Code is hereby amended to read as follows:

17.180.070 Marijuana testing facilities.

A. Permitted Locations. Marijuana testing facilities shall only be located in any Industrial or any Commercial District in the City.

B. Interior Only. Marijuana testing shall be conducted only in the interior of fully enclosed structures, facilities, buildings, or other fully enclosed spaces consistent with the purpose and intent of this chapter. No marijuana testing operations shall be visible from any public right-of-way.

C. Permits. Marijuana testing facilities shall obtain a City-issued Regulatory Permit. A Conditional Use Permit is not required.

D. Administrative Approval. A duly approved marijuana facility, with duly approved entitlements, such as a Conditional Use Permit and Regulatory Permit which is in good standing with the City, may request a Minor Modification to the already approved Conditional Use Permit to operate a marijuana testing facility provided the Director of Community Development, or his or her designee, finds all of the following:

1. There is a 10% or less than deviation to each of the following:
a. On-site circulation and parking, loading and landscaping, b. Placement and/or height of walls and fences,
c. Exterior architectural features, including colors, and/or modification of finished materials that do not alter or compromise the previously approved theme;
d. The density or intensity of a development project,
e. Paving, and
f. Hours of operation;

2. The marijuana testing facility and its use is consistent with the goals, objectives, policies and programs of the general plan;

3. The marijuana testing facility and its use complies with all applicable zoning and other regulations;

4. The marijuana testing facility and its use will not be detrimental to the public health, safety or welfare or materially injurious to properties or improvements in the vicinity;

5. The location, design and operation of the marijuana testing facility and its use will be compatible with existing and planned land uses in the vicinity;

6. Any project contemplating this Administrative Approval must comply with the California Environmental Quality Act (“CEQA”), and any and all applicable State and local laws and regulations. If CEQA is in fact implicated, as so determined by the Director of Community Development, CEQA must be adhered to, as so required by law;

7. Applications for a modification of a Conditional Use Permit under this Administrative Approval section shall be on a form prescribed by the Director and shall be filed with the Department, pursuant to Chapter 17.68 (Applications and Fees) and must be approved by the Director, or designee, who may establish additional conditions to further the intent of this section. Any modification request which exceeds the prescribed limitations outlined in this section shall comply with requirements set forth in Section 17.180.060(B)(2).

Minor modifications shall not apply when a nonconforming use, structure or site is involved. Marijuana testing facility applications under this section may be referred to the Planning Commission at the discretion of the Director.

E. Hours of Operation. All marijuana testing facilities located in any Light Industrial (I-L) District may operate up to twenty-four hours per day and up to seven days per week.

F. Noise. Any marijuana testing facility located in a Light Industrial (I-L) District must, at all times, comply with all applicable noise regulations, including, but limited to, Chapter 8.12 of this code.

Section 8. AMENDING SECTION 17.180.080 “MARIJUANA DISTRIBUTION FACILITIES” OF CHAPTER 17.180 (“MARIJUANA FACILITIES
OPERATION AND LOCATION”) OF TITLE 17 “ZONING” OF THE

DESERT HOT SPRINGS MUNICIPAL CODE
Section 17.180.080 (“Marijuana Distribution Facilities”) of Chapter 17.180 (“Marijuana Distribution Facilities”) of Title 17 (“Zoning”) of the Desert Hot Springs Municipal Code is hereby amended as follows:

17.180.080 Marijuana distribution facilities.

A. Permitted Locations. Marijuana distribution facilities shall only be located in Industrial Districts in the City, upon issuance of a Conditional Use Permit and a marijuana Regulatory Permit issued pursuant to the City’s Municipal Code.

B. Permits. Marijuana distribution facilities shall obtain a City-issued Conditional Use Permit and Regulatory Permit.

C. Administrative Approval. A duly approved marijuana facility, with duly approved entitlements, such as a Conditional Use Permit and Regulatory Permit in good standing with the City, may request modification of the already approved Conditional Use Permit to operate a marijuana distribution facility provided the Director of Community Development, or his or her designee, finds all of the following:

1. There is a 10% or less than deviation to each of the following:
a. On-site circulation and parking, loading and landscaping, b. Placement and/or height of walls and fences,
c. Exterior architectural features, including colors, and/or modification of finished materials that do not alter or compromise the previously approved theme,
d. The density or intensity of a development project,
e. Paving, and
f. Hours of operation;

2. The marijuana distribution facility and its use is consistent with the goals, objectives, policies and programs of the General Plan;

3. The marijuana distribution facility and its use complies with all applicable zoning and other regulations;

4. The marijuana distribution facility and its use will not be detrimental to the public health, safety or welfare or materially injurious to properties or improvements in the vicinity;

5. The location, design and operation of the marijuana distribution facility and its use will be compatible with existing and planned land uses in the vicinity;

6. Any project contemplating this Administrative Approval must comply with the California Environmental Quality Act (“CEQA”), and any and all applicable State and local laws and regulations. If CEQA is in fact implicated, as so determined by the Director of Community Development, CEQA must be adhered to, as so required by law;

7. Applications for a modification of a Conditional Use Permit under this Administrative Approval section shall be on a form prescribed by the Director and shall be filed with the Department, pursuant to Chapter 17.68 (Applications and Fees) and must be approved by the Director, or designee, who may establish additional conditions to further the intent of this section. Any modification request which exceeds the prescribed limitations outlined in this section shall comply with requirements set forth in Section 17.180.060(B)(2).

Minor modifications shall not apply when a nonconforming use, structure or site is involved. Marijuana distribution facility applications under this section may be referred to the Planning Commission at the discretion of the Director.

D. Interior Only. Other than loading, unloading and transportation, all distribution of marijuana and marijuana products shall be conducted only in the interior of enclosed structures, facilities, or buildings.

E. Hours of Operation. All marijuana distribution facilities located in any Light Industrial (I-L) District may operate up to twenty-four hours per day and up to seven days per week.

F. Noise. Any marijuana distribution facility located in a Light Industrial (I-L) District must, at all times, comply with all applicable noise regulations, including, but limited to, Chapter 8.12 of this code.

E.G. Labor Peace Agreements. All applicants for a Conditional Use Permit pursuant to this chapter shall demonstrate that it has already entered into, and will abide by the terms of a labor peace agreement, as defined in California Business and Professions Code Section 26000 prior to issuance of Certificate of Occupancy.

F.H. Public Safety. All applicants for Conditional Use Permit to operate a marijuana distribution facility under this chapter shall: (1) demonstrate that such facility will be equipped with adequate security installations and systems to prevent trespassing, theft and diversion of marijuana for unlawful purposes, including exterior lighting, an alarm system, and 24-hour, on-site security personnel, tag and trace protocols and video surveillance; and (2) shall maintain such security installations and systems while in operation.

Section 9. SEVERABILITY

That the City Council declares that, should any provision, section, paragraph, sentence or word of this ordinance be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this ordinance as hereby adopted shall remain in full force and effect.

Section 10. EXECUTION AND CERTIFICATION

That the City Clerk is directed to do all things necessary to cause the execution of this ordinance immediately upon its adoption and shall thereafter certify the passage of this ordinance and cause the same to be published according to law.

Section 11. EFFECTIVE DATE

That this ordinance shall take effect thirty (30) days after its second reading by the Desert Hot Springs City Council.

PASSED AND ADOPTED by the City Council of the City of Desert Hot Springs at a regular meeting held on the ___ day of ______, 2021 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST:
_________________________________ ______________________________ Jerryl Soriano, City Clerk Scott Matas, Mayor
APPROVED AS TO FORM:
_________________________________
Jennifer Mizrahi, City Attorney

SR-23-040
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: March 7, 2023
Department: Code & Cannabis Compliance
Prepared by: Christina Newsom, Compliance Director
Subject: An Ordinance to Update Regulations for Transfers of Ownership for Cannabis Businesses (Exempt from CEQA pursuant to CEQA Guidelines Section 15061 (b)(3))
RECOMMENDATION:
1) Staff Report
2) Entertain questions of Staff from the City Council;
3) Open the Public Hearing;
4) Take public testimony for those in favor;
5) Take public testimony from those opposed;
6) Take public testimony from those in a neutral position; 7) Close the Public Hearing; and
8) City Council discussion and questions to Staff; and
9) Introduce for First Reading and read by title only: “An Ordinance of the City Council of the City of Desert Hot Springs, California Amending Section 5.50 “Cannabis Businesses” of Title 5 “Business Licenses and Regulations” of the Desert Hot Springs Municipal Code in Order to Update Regulations for Transfers of Ownership."
BACKGROUND:

Chapter 5.50 of the Desert Hot Springs Municipal Code (“DHSMC”) provides the regulatory framework for the operation of cannabis facilities, including the process for transferring ownership of a Cannabis Facility from an owner/owner group to another owner/owner group.

Currently the City's Municipal Code does not clearly and adequately define ownership of a Cannabis Facility, while State regulations specifically define which change(s) in ownership constitutes a transfer of ownership. The intent is to provide specificity to what constitutes ownership, a transfer of ownership, and the required process to address transfers of ownership.

DISCUSSION:

The proposed ordinance seeks to amend Chapter 5.50 to define ownership, transfer of ownership, and define the process for transferring ownership of a Cannabis Facility. Cannabis and Code Compliance has processed numerous transfers of ownership, which is onerous to the new owners and difficult to process, causing confusion and long delays in processing.

SR-23-040
Staff conducted research and met with other Cities to discuss various transfer of ownership processes.

The following proposed amendments would allow for a defined and efficient process for staff to regulate cannabis facility transfers of ownership:

Cannabis Facility Ownership Terminology:
1) Removes term "responsible persons" and includes "owners" from applicable ordinances.

Ownership is Defined as Follows:
1) A person with an aggregate ownership interest of 20% or more in a cannabis facility, or in the person applying for a Cannabis Facilities Regulatory Permit. 2) The manager of a nonprofit or other entity.
3) A member of the board of directors of a non-profit or for-profit entity. 4) All persons with an aggregate ownership interest of twenty percent (20%) or more in a cannabis facility, including but not limited to:
a) A general partner of a cannabis facility that is organized as a partnership. b) A non-member manager or managing member of a cannabis facility that is organized as a limited liability company.
c) Any person holding a voting interest in a partnership, association, or limited liability company.
d) All officers or directors of a cannabis facility that is organized as a corporation and all shareholders who individually own more than twenty percent (20%) of the issued and outstanding stock of the corporation.
5) A person who will be participating in the direction, control, or management of a cannabis facility.

Change in ownership:
1) Any of the following changes in ownership affecting a permittee shall require the issuance of a new Cannabis Facilities Regulatory Permit pursuant to this Chapter:
a) Any change affecting any ownership interest of a cannabis facility or person that results in a person holding an aggregate ownership interest of 20% or more of a cannabis facility, when that person did not previously hold an aggregate ownership interest of 20% or more in the cannabis facility.
b) Any change in the direction, control, or management of a cannabis facility.

Changes to a Cannabis Facility:

SR-23-040
1) Any of the following changes to the structure or operation of a cannabis facility shall require only a permit modification. A permittee seeking a permit modification as required under this subsection shall pay the required filing fee for a permit modification, as determined by resolution of the City Council, and provide such information, including the information required by section 5.50.040, as may be required by the City Manager or designee. The City Manager or designee shall apply the criteria in section 5.50.060 to decide whether to approve the modification. The decision of the City Manager or designee shall be final.
2) Any change affecting any ownership interest of a cannabis facility, including, but not limited to, any change in ownership that affects an ownership interest of less than 20% of the cannabis facility. 3) A change in the form or structure of a permittee. Notwithstanding any other provision of this section, a permittee may undertake any change in its form or structure, as long as the change in form or structure does not cause any change affecting an ownership interest. The permittee must promptly apply for and obtain a permit modification.

FISCAL IMPACT:

None.

ENVIRONMENTAL ANALYSIS:

The following ordinance is categorically exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15061(b)(3) because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.

ATTACHMENTS:

Exhibit 1: Ordinance - Transfer of Ownership

ORDINANCE NO. _____

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DESERT
HOT SPRINGS, CALIFORNIA AMENDING CHAPTER 5.50 “CANNABIS BUSINESSES” OF TITLE 5 “BUSINESS LICENSES AND
REGULATIONS” OF THE DESERT HOT SPRINGS MUNICIPAL CODE

IN ORDER TO UPDATE REGULATIONS FOR TRANSFERS OF

OWNERSHIP
WHEREAS, the City of Desert Hot Springs (“City”) is a charter city organized pursuant to Article XI of the California Constitution; and WHEREAS, Chapter 5.50 of the Desert Hot Springs Municipal Code imposes operating conditions on cannabis facilities, such as security plans, background checks, and odor control; and
WHEREAS, the City Council desires to amend Chapter 5.50 of the Desert Hot Springs Municipal Code to update regulations related to transfers of ownership for cannabis facilities and obtaining information on owners and personnel; and WHEREAS, the City Council finds that regulating transfers of ownership is in the best interest of the public health, safety and welfare of the residents of the City.

NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Desert Hot Springs as follows:

Section 1. RECITALS
That the foregoing recitals are true and correct and are herein adopted by this reference.

Section 2. AMENDMENT OF CHAPTER 5.50 “CANNABIS
BUSINESSES” OF TITLE 5 “BUSINESS LICENSES AND
REGULATIONS” OF THE DESERT HOT SPRINGS

MUNICIPAL CODE
Chapter 5.50 (“Cannabis Businesses”) of Title 5 (“Business Licenses and Regulations”) of the Desert Hot Springs Municipal Code is hereby amended to read in its entirety as follows:

5.50.010 Purpose and intent.

Cannabis facilities shall be permitted, upon application and approval of a regulatory permit in accordance with the criteria and procedures set forth in this chapter, which include the need to obtain and maintain a conditional use permit validly issued by the City per the code. Cannabis facilities shall operate under the regulations and conditions as set forth in this chapter. Nothing in this chapter is intended to repeal or conflict with Chapter 17.180 of this code, and both chapters shall be read together to effectuate the purposes and intent of this code.

5.50.020 Definitions.

Words and phrases not specifically defined in this code shall have the meaning ascribed to them as defined in the following sources:

A. The Compassionate Use Act of 1996 (California Health and Safety Code Section 11362.5).

B. The Medical Marijuana Program Act (California Health and Safety Code Sections 11362.7 through 11362.83).

C. Medicinal and Adult-Use Cannabis Regulation and Safety Act (California Business and Professions Code Sections 26000 through 26211).

D. When used in this chapter, the defined terms in Chapter 17.180 of the municipal code shall have the same meanings for this chapter. “Cannabis” and “marijuana” have the same meaning and are used interchangeably.

E. When used in this chapter, references to State law include the laws as may be amended.
“Applicant” means any business entity person applying for a permit or a renewal of a permit pursuant to this chapter.
“Cannabis” or “marijuana” shall have the same meaning as provided in Health and Safety Code Section 11018, as amended (which code section used to define marijuana).

The terms cannabis and marijuana shall be used interchangeably in this chapter. “Cannabis accessories” means any equipment, products or materials of any kind which are used, intended for use, or designed for use in planting, propagating, cultivating, growing, harvesting, manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing, packaging, repackaging, storing, smoking, vaporizing, or containing cannabis, or for ingesting, inhaling, or otherwise introducing cannabis or cannabis goods into the human body.
“Cannabis business park” means a property owned by a private party or entity located in a commercial or industrial district that leases or sells or otherwise uses structures, parcels, or lots therein to two or more cannabis facilities engaged in commercial cannabis activity and which provides for the park security, amenities, improvements, and landscaping for the cannabis facilities therein. “Cannabis concentrate” means cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the product’s potency.

Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this chapter. A cannabis concentrate is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.

“Cannabis cultivation facility” means a facility wherein cannabis is propagated, planted, grown, harvested, dried, cured, graded, labeled, tagged for tracking, or trimmed, or wherein all or any combination of those activities takes place. “Cannabis distribution facility” means any facility or location, the primary function of which is the procurement, sale, and/or transport of cannabis and/or cannabis goods between entities operating in strict accordance with State law, as may be amended from time to time, and subject to the provisions of this chapter and the City’s Municipal Code. “Cannabis facility” means collectively any facility that is defined in Chapter

17.180 any business or operation that engages in commercial cannabis activity or medicinal cannabis, and includes every cannabis facility type defined in this chapter and in Chapter 17.180 of this code.
“Cannabis goods” means cannabis, including dried flower, and products containing cannabis.
“Cannabis manufacturing facility” means a facility where the production of cannabis concentrate, and/or the preparation, propagation, or compounding of manufactured cannabis, either directly or indirectly or by extraction methods or independently by means of chemical synthesis, or the packaging or repackaging of cannabis or cannabis goods, or the labeling or relabeling of its containers, occurs, provided the facility holds a valid cannabis manufacturing facility license, a cannabis regulatory permit, and a conditional use permit all issued in accordance with this chapter and the City’s Municipal Code, and provided that the facility will qualify for a valid State license when the State of California begins issuing State licenses to cannabis manufacturers.
“Cannabis testing facility” shall have the same definition as in the Business and Professions Code Section 26001, as may be amended, which currently means a laboratory, facility, or entity in the State that offers or performs tests of cannabis or cannabis goods and that is both of the following: (1) accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the State; (2) licensed by the Bureau of Cannabis Control, and regulated by Section 5700 et seq., as may be amended of Title 16 of the California Code of Regulations. “City” means the City of Desert Hot Springs.
“Commercial cannabis activity” includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, dispensing, or sale of cannabis and cannabis goods, or any other cannabis activity allowed in this code.
“Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.
“Cultivator” shall mean cannabis facilities licensed as a cultivation site or as a cultivator pursuant to California Business and Professions Code Section 19300 et seq., or pursuant to California Business and Professions Code Section 26000 et seq.

“Delivery” means the commercial transfer of cannabis or cannabis goods from a State licensed distributor or retailer wherever located, to an adult 21 years of age or older, qualified patient, or primary caregiver located in the City of Desert Hot Springs, and shall include the use of any technology platform that enables adults 21 years of age or older, qualified patients, or primary caregivers located in Desert Hot Springs to arrange for or facilitate the commercial transfer of cannabis or cannabis products. “Distribution” means the procurement, sale, or transport of cannabis or cannabis goods either within the City limits, or to and from the City from a place outside the City limits, from a permitted business location of a licensed entity to a permitted business location of another licensed entity subject to State laws and regulations and subject to the provisions of this chapter and the City’s Municipal Code. “Legal parcel” means a parcel of land for which one legal title exists. Where contiguous legal parcels are under common ownership or control, such legal parcels may at the option of the property owner be counted as a single parcel for purposes of this chapter.
“Light manufacturer” means a person or entity that conducts the production, preparation, or compounding of cannabis or cannabis goods either directly or indirectly not using any kind of extraction method whatsoever, but merely using chemical synthesis, such as baking or infusing at a fixed location that packages or repackages cannabis or cannabis goods or labels or relabels its container.
“Light manufacturing facility” means a facility that conducts the production, preparation, or compounding of cannabis or cannabis goods either directly or indirectly not using any kind of extraction method whatsoever, but merely using chemical synthesis, such as baking or infusing at a fixed location that packages or repackages cannabis or cannabis goods or labels or relabels its container.
“Limited-access area” means an area within a cannabis facility in which cannabis goods are stored or held and is only accessible to a responsible person, permitholder permittee, owner, or employees and or authorized individuals. “Manufacturer” means a person or entity that conducts the production, preparation, propagation, or compounding of cannabis or cannabis goods either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis goods or labels or relabels its container. “Medicinal cannabis” or “medicinal cannabis good” means cannabis or a cannabis good, respectively, intended to be sold for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code, by a medicinal cannabis patient in California who possesses a physician’s recommendation. “Non-storefront retail facility” shall have the same meaning as in Business and Professions Code Section 26070(a)(1), as may be amended, and further defined by Sections 5414 to 5427 et seq., in the California Code of Regulations, as may be amended.

Currently, this is a delivery only retail facility which sells cannabis to a customer solely and exclusively by delivery.
“Off-site sales” means the sale of cannabis for consumption off the premises. “On-site sales” means the sale of cannabis for consumption on the premises. “Owner” or “Owners” means any of the following:

1. A person with an aggregate ownership interest of 20% or more in a cannabis facility, or in the person applying for a Cannabis Facilities Regulatory Permit.

2. The manager of a nonprofit or other entity.

3. A member of the board of directors of a non-profit or for-profit entity.

4. All persons with an aggregate ownership interest of twenty percent (20%) or more in a cannabis facility, including but not limited to:
a. A general partner of a cannabis facility that is organized as a partnership.
b. A non-member manager or managing member of a cannabis facility that is organized as a limited liability company.
c. Any person holding a voting interest in a partnership, association, or limited liability company.
d. All officers or directors of a cannabis facility that is organized as a corporation and all shareholders who individually own more than twenty percent (20%) of the issued and outstanding stock of the corporation.

5. A person who will be participating in the direction, control, or management of a cannabis facility.
“Permittee” means any business entity possessing a cannabis facilities regulatory permit pursuant to this chapter.
“Person” includes any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, and the plural as well as the singular. “Responsible person” means any officer, board member, person who will participate in the direction, control or management of, or any person with an ownership stake in, an applicant or permittee.

“Retail area” means a building, room, or other area that is open to the public, upon the licensed retailer or licensed microbusiness premises authorized to engage in retail sales in which cannabis goods are sold or displayed.
“Storefront retail facility” shall have the same meaning as in Business and Professions Code Section 26070(a)(1), as may be amended, and further defined by Sections 5400 to 5413 et seq., in the California Code of Regulations, as may be amended.

Currently, this is a retail facility which sells and/or delivers cannabis or cannabis goods to customers. A storefront retail facility shall have a licensed premises which is a physical location from which commercial cannabis activities are conducted.

5.50.030 Cannabis facilities regulatory permit required.

A. It is unlawful for any person, cannabis facility, a cannabis business park, association, partnership, corporation, or any other entity to engage in, conduct or carry on, in or upon any premises within the City, any commercial cannabis activity without a cannabis facilities regulatory permit.

B. Cannabis facilities and cannabis business parks shall register and obtain a cannabis facilities regulatory permit from the City prior to commencing or continuing operation.

C. A valid State license pursuant to Business and Professions Code Section 26000 et seq., shall be required to operate any cannabis facility.

5.50.040 Cannabis facilities regulatory permit application process.

A. Every applicant owner must complete each of the following steps prior to submitting an application for a cannabis facilities regulatory permit:

1. Secure all necessary land use entitlements as required by the City of Desert Hot Springs Zoning Code for the premises of the cannabis facility.

2. Obtain a valid State license pursuant to California Business and Professions Code Section 26000 et seq.

3. Secure building permits.

B. Upon the completion of all tasks under subsection A, the applicant owner shall file an application to the City Manager or designee upon a form provided by the City and shall pay a nonrefundable application fee as established by resolution of the City Council as amended from time to time.

C. The application for a cannabis facilities regulatory permit shall include, but not be limited to, the following:

1. An operating plan that complies with the requirements of this chapter. The operating plan includes a general description of the proposed types of products and activities at the cannabis facility.

2. The address of the location of the cannabis facility and the names, dates of birth, phone numbers, email addresses, and mailing addresses of owners responsible persons.

3. Information regarding the applicant cannabis facility, including, without limitation, the name and address of the applicant cannabis facility, and evidence that the applicant cannabis facility is duly organized under the applicable laws of the State of California.

4. A floor plan designating all interior dimensions of the premises and the layout of the cannabis facility, including all limited-access areas, areas of ingress and egress, and all security cameras. Such floor plan shall also show the principal uses of the floor area depicted therein. For cultivation sites, such floor plan shall distinguish all dimensions of areas in which plants are located.

5. A list of each current and prospective owner responsible person, employee, independent contractor, and any other persons engaged in the operation of the cannabis facility. Such persons must be 21 years of age or older.

6. For each current and prospective owner responsible person, employee, independent contractor, and any other persons engaged in the operation of the cannabis facility, a list of their criminal convictions in the State of California and in states other than California, if any, and any civil, administrative or legal judgment or other activities of a fraudulent nature.

7. All owners responsible persons, employees, and independent contractors, and any other persons engaged in the operation of the cannabis facility must submit fingerprints and other information for a background check, including a criminal history records check, as required by this chapter.

8. The name and address of the owner and lessor of the real property upon which the cannabis facility is to be operated. In the event the applicant is not the legal owner of the property, the application must be accompanied with a notarized acknowledgement from the owner of the property that a cannabis facility will be operated on his or her property.

9. A security plan that addresses the measures required by this chapter.

10. An odor control plan that complies with the requirements of this chapter.

11. The name and address of the applicant’s cannabis facility’s current agent for service of process or other authorized agent.

12. The names and addresses of any other cannabis facility currently being operated by the applicant or owner responsible person, or that had previously been operated by the applicant or owner responsible person, and a statement of whether the authorization for any such operation had been revoked or suspended and, if so, the reason therefor.

13. Authorization for the City Manager or designee to seek verification of the information contained within the application.

14. A statement in writing by the applicant that it certifies under penalty of perjury that all the information contained in the application is true and correct.

15. Payment of a nonrefundable application fee. The fee shall be established by resolution of the City Council from time to time.

16. Any such additional information as deemed necessary by the City Manager or designee to administer this chapter.

D. If the application is incomplete, the applicant shall have an opportunity to cure the incompleteness within thirty days written notice by the City Manager or designee.

E. An applicant may withdraw its application any time prior to the issuance or denial of a permit by submitting a form for withdrawal provided by the City. Submission of a withdrawal form does not deprive the City of its authority to institute or continue any proceeding against the applicant for the denial of an application for a permit upon any ground provided by law or to enter an order denying an application for a permit upon any such ground.

F. Following the issuance of a cannabis facilities regulatory permit, the applicant cannabis facility may not commence or resume operations until it has secured a business license.

5.50.050 Background checks.

A. Prior to commencing work at a cannabis facility or a cannabis business park, all current and prospective owners responsible persons, employees, independent contractors, applicants, permittees, temporary employees, and any other persons who will be engaged in the operation of the cannabis facility or a cannabis business park must submit to and pass a background check. The background check shall include fingerprinting and other necessary information for a criminal history records check conducted by the Desert Hot Springs Police Department. Employees hired through employment agencies are subject to this section.

B. Prior to commencing work at a cannabis facility or a cannabis business park, any owners responsible persons, employees, independent contractors, permittees, temporary employees, and any other persons who will be engaged in the operation of the cannabis facility or a cannabis business park hired or retained after a cannabis facilities regulatory permit has been obtained by a cannabis facility must submit to and pass a background check. The background check shall include fingerprinting and other necessary information for a criminal history records check conducted by the Desert Hot Springs Police Department. Employees hired through employment agencies are subject to this section. The City must be immediately notified by the cannabis facility or a cannabis business park upon the hiring or retention of new employees hired through employment agencies.

C. The City shall request from the State Department of Justice subsequent notification service, pursuant to Section 11105.2 of the Penal Code, for persons subject to a criminal history records check.

D. The standards contained in subsections E through I of Section 5.50.060 of this chapter shall govern whether a person passes a background check.

E. For purposes of this section, no person subject to a background check is deemed to have passed unless notified in writing by the Desert Hot Springs Police Department.

F. Upon passing the background check, each owner responsible person, employee, independent contractor, applicant, temporary employees, and any other person engaged in the operation of the cannabis facility or a cannabis business park shall be assigned a City-issued cannabis identification card that must be visibly worn at all times. No person required to carry a City-issued cannabis identification card may work at a cannabis facility or a cannabis business park without carrying a City-issued cannabis identification card. Conviction for any controlled substance felony subsequent to commencing work or employment shall be grounds for revocation of a cannabis identification card or denial of the renewal of a cannabis identification card.

G. All applicants, owners responsible persons, permittees, employees, temporary employees, independent contractors, and any other persons engaged in the operation of the cannabis facility or cannabis business park who were previously not subject to this section and who have already commenced work shall comply with this section upon the effective date of the ordinance codified in this section.

5.50.060 Grounds for denial of a cannabis facilities regulatory permit.

The City Manager or designee shall deny a regulatory permit for a cannabis facility or a cannabis business park upon making any of the following findings:

A. The applicant or owner(s) responsible persons made one or more oral or written misrepresentations or omissions.

B. The cannabis facility does not possess an active license issued pursuant to California Business and Professions Code Section 26000 et seq.

C. The cannabis facility or a cannabis business park does not comply with the provisions of this chapter or State law.

D. The cannabis facility or a cannabis business park has not obtained all land use entitlements required by the Desert Hot Springs Zoning Code.

E. The suitability of current or prospective owners responsible persons, applicants, permittees, employees, temporary employees, independent contractors, or any other person who will be engaged in the operation of the cannabis facility or a cannabis business park per the terms of this chapter is insufficient based on any such

person’s previous civil, administrative or legal judgment or other activities of a fraudulent nature.

F. A current or prospective owner responsible person, applicant, employee, temporary employees, independent contractor, or any other person who will be engaged in the operation of the cannabis facility or a cannabis business park has been convicted for an offense that is substantially related to the qualifications, functions, or duties of the business or profession for which the application is made. A conviction means a plea of guilty, entry of judgment upon a finding of guilty, or a plea of nolo contendere. An offense is substantially related to the qualifications, functions, or duties of the business for which the application is made includes, but is not limited to, the following:

1. A violent felony conviction as defined under Section 667.5(c) of the Penal Code.

2. A serious felony conviction as defined under Section 1192.7 of the Penal Code.

3. A felony conviction involving fraud, deceit, or embezzlement.

4. A felony conviction for the hiring, employing, or using a minor in transporting, selling, giving away, preparing for sale, or peddling, any controlled substance to a minor.

5. A felony conviction for the selling, offering to sell, furnishing, offering to furnish, administering, or giving away any controlled substance to a minor.

6. A felony conviction for drug trafficking with enhancements pursuant to Health and Safety Code Section 11370.4 or 11379.8.

7. A prior sanction by the State, a city, a county, or a city and county for unauthorized commercial cannabis activity or had their state license suspended or revoked within the previous three years.

G. Notwithstanding subsection F, the City Manager or designee may conduct a thorough review of the nature of the crime, conviction, circumstances, and evidence of rehabilitation of the responsible persons, current or prospective employees, independent contractors, or any other persons who will be engaged in the operation of the cannabis facility or a cannabis business park to determine whether such the person(s) is are otherwise suitable to work at a cannabis facility or a cannabis business park and whether issuing a permit to the applicant cannabis facility would not compromise public safety.

H. Any person required to undergo a background check under this section responsible person, current or prospective employee, independent contractor, or any other person who will be engaged in the operation of the cannabis facility or a cannabis business park shall not be denied a permit if denial is solely based on either of the following:

1. A conviction or act that is substantially related to the qualifications, functions, or duties of the business or profession for which the application is made for which a certificate of rehabilitation pursuant to Penal Code Section 4852.01 et seq., has been acquired.

2. A conviction that was subsequently dismissed pursuant to Section 1203.4, 1203.4a, or 1203.41a of the Penal Code or any other provision allowing for dismissal of a conviction.

I. Except as to subsections (F)(5) and (6), and notwithstanding Chapter 2 of Division 1.5 of the California Business and Professions Code, where the sentence, including any term of probation, incarceration, or supervised release, is completed for a conviction of possession of, possession for sale, sale, manufacture, transportation, or cultivation of cannabis, such conviction is not considered substantially related, and shall not be the sole ground for denial of a permit. For all other controlled substances, the City Manager or designee shall have sole discretion to determine whether such conviction is considered substantially related and grounds for denial of a permit.

J. One or more owner responsible person, current or prospective employee, temporary employees, independent contractor, or any other person who will be engaged in the operation of the cannabis facility or a cannabis business park who is not 21 years of age or older is listed in the application.

K. Failure to pay the application fee.

L. The application is inactive for a period of six months from the date of submission. Inactive includes, but is not limited to, the failure to obtain a certificate of occupancy, failure to commence construction work, failure to comply with the conditions of approval, and failure to submit all required documentation.

M. Any violation of this municipal code.

N. Any other condition specified by law.

O. If the City Manager or designee denies an application, a written notice specifying the reasons for denial shall be issued to the applicant. The City Manager or designee’s decision shall be final unless the applicant appeals pursuant to Section

5.50.220 within 14 calendar days of the date of service of the City Manager’s or designee’s decision.

5.50.070 General security requirements.

A. Each cannabis facility shall develop and implement, to the City Manager or designee’s satisfaction, a security plan to prevent unauthorized entry to the cannabis facility and to prevent theft or unlawful trafficking of cannabis and cannabis goods.

Security plans shall contain the following measures:

1. Security cameras shall be installed and maintained in good condition, and used in an on-going manner with at least 90 days of digitally recorded documentation in

a format approved by the City Manager or designee. The cameras shall be in use 24 hours per day, seven days per week. The areas to be covered by the security cameras shall include, but are not limited to, public areas, limited-access areas, storage areas, transportation areas, employee areas, all doors and windows, and any other areas as determined to be necessary by the City Manager or designee. a. The security cameras shall have sufficient battery backup to support a minimum of 15 minutes of recording in the event of a power outage. b. The City Manager and designee shall have access to the security cameras of each cannabis facility at any time, including remote access. The City Manager or designee may duplicate and/or take possession of recordings made by the security cameras. No search warrant or subpoena shall be required. c. Cannabis facilities shall provide the City Manager or designee the computer monitoring application used, IP address and access usernames and passwords used to login into the security camera system and view live footage, playback footage and to extract recordings.

2. The cannabis facility shall be alarmed with an audible interior and exterior alarm system, unless waived for extenuating circumstances by the City Manager or designee, that is operated and monitored by a recognized security company, deemed acceptable by the City Manager or designee. Any change in the security company shall be subject to the approval of the City Manager or designee. All current contact information regarding the cannabis facility’s security company shall be provided to the City Manager or designee.

3. Entrance to the dispensing, cultivation, manufacturing, testing, or distribution areas and any storage areas shall be locked at all times, and under the control of cannabis facility staff.

4. All cannabis and cannabis goods shall be securely stored, and a reliable, commercial alarm system shall be installed and maintained where the cannabis and cannabis goods are secured.

5. A security guard, licensed by, and compliant with all regulations of the California Department of Consumer Affairs, Bureau of Security and Investigative Services shall be present only during business hours for storefront retailers and 24 hours a day for all other types of cannabis facilities. The security guard(s) must possess a valid Security Guard Card and if armed a Firearms Permit issued by the California Department of Consumer Affairs, Bureau of Security and Investigative Services. A cannabis facility may contract through a properly regulated private security company which private company complies with all State law requirements, including those of the Bureau of Cannabis Compliance. All security personnel hired or contracted for by the licensee shall be licensed by the Bureau of Security and Investigative Services and shall comply with Chapters 11.4 and 11.5 of Division 3 of the Business and Professions Code. The City must be notified of any change of a private security company, if providing its own security guards.

6. Each cannabis facility shall have a storage and transportation plan, which describes in detail the procedures for safely and securely storing and transporting all cannabis and cannabis goods and any currency.

B. The City Manager or designee and law enforcement shall have the right to enter any cannabis facility at any time unannounced for the purpose of making reasonable inspections to observe and enforce compliance with this chapter and all applicable laws.

1. The cannabis facility shall cooperate with the City Manager or designee who are conducting inspections or investigations relevant to the enforcement of laws and regulations related to this chapter.

C. Every cannabis facility shall notify the City Manager or designee within 24 hours after discovering any of the following:

1. Significant discrepancies identified during inventory. The level of significance shall be determined by the City.

2. Diversion, theft, loss, or any criminal activity pertaining to the operation of the retailer.

3. Diversion, theft, loss, or any criminal activity by any agent or employee of a cannabis facility pertaining to the operation of the cannabis facility.

4. The loss or unauthorized alteration of records related to cannabis or cannabis products, registered qualifying patients, primary caregivers, or cannabis facility employees or agents.

5. Any breach of security.

5.50.080 General Operating Requirements.

All cannabis facilities must comply with the requirements set forth in this section.

A. Every cannabis facility shall operate in compliance with all applicable state and local laws and regulations governing cannabis facilities.

B. Every cannabis facility shall maintain and regularly update on a monthly basis a roster of responsible persons, current owners, employees, temporary employees, independent contractors, and any other person engaged in the operation of the cannabis facility. The roster must include names, each individual cannabis identification number (CID) and a copy of the individuals’ City-issued cannabis identification card, date of hire, and contact information. The roster shall be made available for inspection or copying by the City Manager or designee upon written or oral request. Notwithstanding anything to the contrary in this section, the cannabis facility shall immediately notify the City of any new or different responsible persons, employees, independent contractors, and any other person engaged in the operation of the cannabis facility in order to conduct a background check under Section 5.50.050.

C. No person who is less than 21 years of age may be employed or otherwise engaged in the operation of a cannabis facility.

D. Cannabis and cannabis goods possessed by a cannabis facility shall be kept and stored in a secured manner at all times.

E. On-site smoking, ingestion, or consumption of cannabis shall be prohibited on the premises of all cannabis facilities. “Premises,” for purposes of this section, includes the actual building as well as any accessory structures, common areas and parking areas.

F. Cannabis facilities shall not sell, provide, store, or distribute any alcoholic beverages or tobacco products, or allow such products to be consumed on the premises.

G. Cannabis facilities shall not advertise in a manner intended to encourage persons under 21 years of age to consume cannabis or cannabis goods.

H. Each cannabis facility shall display a copy of its cannabis facilities regulatory permit issued pursuant to this chapter in a conspicuous place at or near the entrance to the premises.

I. Cannabis facilities shall not permit a physician to evaluate potential medicinal cannabis patients or to provide a physician’s recommendation for medicinal cannabis within its premises. Cannabis facilities shall not offer or provide any form of remuneration to a physician who provides physician’s recommendations for medicinal cannabis.

J. Waste Disposal. Disposal of chemical, dangerous or hazardous waste must be conducted in a manner consistent with federal, state and local laws, regulations, rules or other requirements. This may include, but is not limited to, the disposal of all pesticide or other chemicals used in the cultivation process, certain solvents or other chemicals used in the production of cannabis concentrate.

K. Each cannabis facility must ensure that its licensed premises are maintained in a sanitary manner and activities on its licensed premises are conducted in a sanitary manner.

L. Cannabis facilities are not authorized to sublet any portion of their premises for any purpose, unless all necessary applications to modify the existing premises to accomplish any subletting have been approved by the City.

M. Hours. All cannabis facilities may only be open between the hours of 8:00 a.m. and 10:00 p.m. and may operate as often as seven days per week.

N. If consumable cannabis goods (including, but not limited to, lollipops, brownies, cookies, ice cream, etc.) are present on-site or offered for distribution, then the cannabis facility shall secure any approval from the County of Riverside Department of Health Services required for handling food products.

O. Cannabis facilities shall have an electronic point of sale system that produces historical transactional data for review by the City Manager or designee for auditing purposes.

P. Odor Control. Cannabis facilities shall provide a sufficient odor absorbing ventilation and exhaust system so that odor generated inside the cannabis facility that is distinctive to its operation is not detected outside the cannabis facility, anywhere on adjacent property or public rights-of-way, on or about any exterior or interior common area walkways, hallways, breezeways, foyers, lobby areas, or any other areas available for common use by tenants or the visiting public, or within any other unit located within the same building as the cannabis facility. As such, cannabis facilities must install and maintain the following equipment or any other equipment which the City Manager or designee determines has the same or better effectiveness:

1. An exhaust air filtration system with odor control that prevents internal odors from being emitted externally; or

2. An air system that creates negative air pressure between the cannabis facility’s interior and exterior so that the odors generated inside the cannabis facility are not detectable outside the cannabis facility.

A violation of this subsection by any cannabis facility located within an Industrial District shall be excused so long as the odor is not detectable more than 150 feet beyond the cannabis facility’s property line.

Q. Each cannabis facility shall provide the City Manager or designee with the name, phone number, facsimile number, and email address of an on-site community relations or staff person or other representative to whom the City can provide notice if there are operating problems associated with the cannabis facility or refer members of the public who may have any concerns or complaints regarding the operation of the cannabis facility. Each cannabis facility shall also provide the above information to its business neighbors located within 100 feet of the cannabis facility as measured in a straight line without regard to intervening structures, between the front doors of each establishment.

R. Create and maintain an active account within the state’s track and trace system required by Business and Professions Code Section 26067 prior to commencing any commercial cannabis activity. In the event of system failure, the cannabis facility shall keep a hard copy record and transfer the information to the track and trace system within 24 hours of the system being available.

S. Cannabis facilities must pay all applicable taxes pursuant to Federal, State, and local law, including, but not limited to, the cannabis tax required by Title 3, State and local sales and use taxes, and State excise taxes.

T. Cannabis facilities shall fully comply with all applicable provisions of the Medicinal and Adult-Use Cannabis Regulation and Safety Act (California Business and Professions Code Sections 26000 through 26211), Compassionate Use Act of 1996, the Medical Marijuana Program Act, the 2008 Attorney General Guidelines, all applicable

provisions of this code, and any specific, additional operating procedures and measures as may be imposed as conditions of approval of the regulatory permit.

U. Cannabis facilities shall create and maintain records of daily sign-in logs for all responsible person, owners, employees, independent contractors, or any other person who will be engaged in the operation of the cannabis facility. A minimum of 30 days of daily sign-in logs shall be provided to the City Manager or designee upon a verbal or written request.

V. The City Manager or designee may impose reasonable terms and conditions on the proposed operations of the cannabis facility in addition to those specified in this chapter.

5.50.090 Retailer operating requirements.

In addition to the operation requirements of Section 5.50.080, storefront retail facilities shall comply with the requirements of this section.

A. Storefront retail facilities shall comply with Section 17.180.040 of this code.

B. The display of cannabis and cannabis goods for sale shall be limited to retail areas and not be visible from outside the premises. Cannabis goods may be removed from their packaging and placed in containers to allow for customer inspection.

The containers shall not be readily accessible to customers without assistance of retailer personnel. A container must be provided to the customer by the licensed retailer or its employees, who shall remain with the customer at all times that the container is being inspected by the customer. Cannabis goods removed from their packaging for display shall not be sold or consumed and shall be destroyed when no longer used for display.

C. Storefront retail facilities may sell or otherwise provide equipment, supplies, and cannabis accessories used to consume cannabis and cannabis goods.

D. A storefront retail facility that possesses edible cannabis goods shall comply with the provisions of all relevant state and local laws regarding the storage, handling, and sale of food.

E. A storefront retail facility may not sell any expired products, cannabis or cannabis goods. A storefront retail facility shall not alter, edit, or adjust in any manner an expiration date on any item or product once affixed by its manufacturer.

F. No storefront retail facility shall cause or permit the access, sale, or exchange of cannabis goods or products to any person who is not at least 21 years of age or at least 18 years of age with a valid physician’s recommendation for medical cannabis.

5.50.100 Nonstorefront retailer operating requirements.

In addition to the operation requirements of Section 5.50.080, nonstorefront retail facilities shall comply with the requirements of this section.

A. Nonstorefront retail facilities shall comply with Section 17.180.045 of this code.

B. A nonstorefront retail facility that possesses edible cannabis goods shall comply with the provisions of all relevant State and local laws regarding the storage, handling, and sale of food.

C. A nonstorefront retail facility may not sell any expired products, cannabis or cannabis goods. A nonstorefront retail facility shall not alter, edit, or adjust in any manner an expiration date on any item or product once affixed by its manufacturer.

D. No nonstorefront retail facility shall cause or permit the access, sale, or exchange of cannabis goods or products to any person who is not at least 21 years of age or at least 18 years of age with a valid physician’s recommendation for medical cannabis.

5.50.110 Cultivator operating requirements.

In addition to the operation requirements of Section 5.50.080,cannabis cultivation facilities shall comply with the requirements of this section.

A. Cannabis cultivation facilities shall comply with Section 17.180.050 of this code.

B. Cannabis cultivation facilities shall submit a full set of plans for approval of any and all CO2 enrichment systems and obtain an operational permit from the office of the Fire Marshal prior to installation and usage.

5.50.120 Manufacture operating requirements.

In addition to the operation requirements of Section 5.50.080, cannabis manufacturing facilities shall comply with the requirements of this section.

A. Cannabis manufacturing facilities shall comply with Section 17.180.060 of this code.

B. Edible cannabis goods shall be manufactured, packaged and labeled in compliance with State law and any implementing regulations adopted by the State.

C. All cannabis manufacturing facilities shall ensure that cannabis is obtained from permitted and licensed cultivation sources and shall implement best practices to ensure that all manufactured cannabis is properly stored, labeled, transported, and inspected prior to distribution at a legally permitted and licensed retailer.

D. Cannabis manufacturing facilities shall submit plans for approval of any and all extraction systems and usage of hazardous materials and obtain an operational permit from the office of the Fire Marshal prior to installation and usage.

5.50.130 (Reserved).

5.50.140 (Reserved).

5.50.150 Cannabis business parks.

In addition to the applicable requirements of this chapter, cannabis business parks shall comply with the requirements of this section.

A. Prior to commencing or continuing operations, the owner(s) of cannabis business parks shall obtain a cannabis facilities regulatory permit pursuant to the provisions of Section 5.50.040, except that a license pursuant to Business and Professions Code Section 26000 et seq., shall not be required. In addition, the owner(s) of cannabis business parks shall submit, as part of their application, the following materials:

1. Interior/Exterior Site Plan. Drawn to scale and fully dimensioned, showing the proposed layout of the cannabis park denoting all the use of areas of the cannabis business park, including cultivation, processing, storing, packaging, labeling, distribution, light manufacturing, manufacturing, cannabis non-storefront retail, and laboratory testing, all access gates, all security cameras, guard houses/stations/offices, public areas, employee areas, doors, windows, storage, cultivation, dispensing, plus location of odor absorbing air ventilation and exhaust systems, and waste management areas, including hazardous waste.

B. For each current and prospective owner, applicant, responsible person, employee, temporary employee, independent contractor, and any other persons engaged in the operation of the cannabis business park, a list of their criminal convictions in the State of California and in states other than California, if any, and any civil, administrative or legal judgment or other activities of a fraudulent nature.

C. Cannabis business parks shall develop and implement a security plan only for the common areas and areas within their exclusive control. Nothing in this chapter shall be construed to authorize cannabis business parks to create, manage, or implement security plans for the individual cannabis facilities located within such parks.

The security plan for cannabis business parks must comply with Section 5.50.070 of this chapter. The cannabis business park shall be subject to reasonable inspections by the City Manager or designee in the same manner as cannabis facilities. In addition, the security plan shall include the following elements:

1. General Security Policies.
a. Security company.
b. Name, address, contact number.

c. Current private patrol operator or properly authorized and regulated private security license number issued by California Department of Consumer Affairs. d. Provision for providing name(s) of all security guards and all required Guard Cards issued by California Department of Consumer Affairs information for each security guard employed.
e. At a minimum, security guards shall be posted at every operational access gate, at the security room to monitor security cameras, and at least one security guard assign to patrolling the premises.

2. Exterior Perimeter.
a. Fencing.
b. Gates.

3. Exterior lighting locations.

4. Video security system.

5. Name of cannabis business park or cannabis tenant list.

6. Video surveillance equipment.

7. Camera coverage/camera placement (interior and exterior).

8. Location of monitoring equipment and staffing.

9. Method for maintaining operation during power outage.

10. Video monitoring computer application, IP address, and access usernames and passwords used to login into the security camera system to view live footage, playback footage and to extract recordings.

11. Provision of Audible Interior/Exterior Alarm.
a. Cannabis business park.
b. Location of interior and exterior alarms.
c. Maintenance company for alarm system.
i. Name.
ii. Contact information.

12. Waste Management Storage and Disposal.

a. Regular green and other waste.
b. Hazardous waste.
c. Proof of utilization of waste company either contracted with the City or approved by the City.

13. Staffing plan to include:
a. General patrol staffing plan within and outside the cannabis business park.
b. Staffing of ingress and egress of the cannabis business park.

14. Access Control Plan.
a. Cannabis business park access.
b. Employees staffing of ingress and egress of the cannabis business park. c. Vendors, visitors, contractor.
d. Provision for immediate access by City, State, or other officials. e. Cannabis industry tenants.
f. Cannabis business park or cannabis tenant provided.
g. Method which each cannabis tenant facility is secured, and access is under control of staff at all times.

15. Names and contact information of individuals associated with the cannabis business park.

16. Provide regularly updated maps depicting the occupied buildings and structures and tenant location and identities.

D. Nothing in this section shall be construed to prohibit any individual cannabis facility located within any cannabis business park from establishing an independent security plan, including security cameras, consistent with Section 5.50.070 of this chapter.

5.50.160 Recordkeeping.

A. Cannabis facilities and cannabis business parks shall maintain complete and accurate records specified in Business and Professions Code Section 26000 et seq., this chapter, and all other applicable recordkeeping regulations and shall make the same available for inspection and examination by the City Manager or designee upon

request. All records specified in this subsection must be maintained for a minimum of seven years.

B. All cannabis facilities shall perform an inventory on the first business day of each month and shall record the total quantity of each form of cannabis on the premises. These records shall be maintained for two years from the date created and shall be made available to the City Manager or designee upon request.

5.50.170 Limitations on City’s liability.

To the fullest extent permitted by law, the City shall not assume any liability whatsoever, with respect to approving any permit pursuant to this chapter or the operation of any cannabis facility or cannabis business parks pursuant to this chapter.

As a condition of approval, a regulatory permit as provided in this chapter, the owner applicant, at the owner’s applicant’s sole cost, shall:

A. Execute an agreement indemnifying the City and its officers, officials, employees, representatives, and agents from any and all claims, losses, damages, injuries, liabilities or losses which arise out of, or which are in any way related to, the City’s issuance of a permit under this chapter, the City’s approval of the operation of the cannabis facility or activity, or the alleged violation of any Federal, State, or local laws by the cannabis facility or any its officers, employees, or agents; B. Maintain insurance in the amounts and of the types that are acceptable to the City Manager or designee;
C. Name the City as an additionally insured on all City required insurance policies;
D. Agree to defend, at its sole expense, any action against the City, its agents, officers, and employees related to the approval of a regulatory permit; and E. Agree to reimburse the City for any court costs and attorney fees that the City may be required to pay as a result of any legal challenge related to the City’s approval of a regulatory permit. The City may, at its sole discretion, participate at its own expense in the defense of any such action, but such participation shall not relieve the operator of its obligation hereunder.

5.50.180 (Reserved).

5.50.190 Transference and renewal of permits.

A. Permits issued pursuant to this chapter are not transferrable. Any unlawful transfer of a permit renders such permit void.

B. A permit issued pursuant to this chapter is valid only as to the permittee identified on the permit with respect to the premises identified on the permit. The permit shall not run with the land.

C. Change in Ownership. Any of the following changes in ownership affecting a permittee shall require the issuance of a new Cannabis Facilities Regulatory Permit pursuant to this Chapter. A permittee may transfer, convey, or sell its ownership interest only to an entity that has applied for and obtained a permit pursuant to this chapter. If there is an ownership group, an individual member transferring his or her interest to another individual will not be considered a change in ownership until the last original ownership member transfers his or her interest.

1. Any change affecting any ownership interest of a cannabis facility or person that results in a person holding an aggregate ownership interest of 20% or more of a cannabis facility, when that person did not previously hold an aggregate ownership interest of 20% or more in the cannabis facility.

2. Any change in the direction, control, or management of a cannabis facility.

D. Changes to a Cannabis Facility. Any of the following changes to the structure or operation of a cannabis facility shall require only a permit modification.

A permittee seeking a permit modification as required under this subsection shall pay the required filing fee for a permit modification, as determined by resolution of the City Council, and provide such information, including the information required by section 5.50.040, as may be required by the City Manager or designee. The City Manager or designee shall apply the criteria in section 5.50.060 to decide whether to approve the modification. The decision of the City Manager or designee shall be final.

1. Any change affecting any ownership interest of a cannabis facility, including, but not limited to, any change in ownership that affects an ownership interest of less than 20% of the cannabis facility.

2. A change in the form or structure of a permittee.

Notwithstanding any other provision of this section, a permittee may undertake any change in its form or structure, as long as the change in form or structure does not cause any change affecting an ownership interest. The permittee must promptly apply for and obtain a permit modification.

E D. Applications for renewal of permits must be submitted on forms provided by the City no less than 30 days prior to the permit’s expiration date. Any permittee allowing their permit to lapse, or which permit expired during a suspension shall be required to submit a new application, pay the corresponding original application fees, and be subject to all aspects of the application process in this chapter.

F E. Any application for renewal shall be denied if:

1. The permittee fails to conform to any of the provisions of this code;

2. The permittee is delinquent in payment of any City taxes related to commercial cannabis activity; or

3. The permit is suspended or revoked at the time of the application.

G F. Relocation. Permittees who will relocate their cannabis facilities from a temporary structure to a permanent structure, or from one location within a cannabis business park to another location within the same cannabis business park, must obtain the approval of the City Manager or designee and acquire the applicable State cannabis license for the new location prior to relocation.

5.50.200 Visitor requirements.

A. Visitors are persons who have not taken a background check and who are not applicants, owners, responsible persons, employees, temporary employees, independent contractors, or other persons engaged in the operation of the cannabis facility or cannabis business park, but who require entry to limited-access areas.

State and City officials shall not be considered visitors. Visitors include contractors hired for maintenance or repairs of the cannabis facility, such as services for HVAC, electrical, plumbing, or similar work.

B. Visitors shall be required to sign a the cannabis facility’s visitor log, which must include the individual’s name, date of entry, and purpose for entry into limited-access areas. Cannabis facilities and cannabis business parks shall confirm the visitor’s name and information by reviewing their government-issued identification.

Only visitors 21 years of age or older may enter limited-access areas.

C. Visitors shall not be allowed to engage in the operation of the cannabis facility or cannabis business park.

D. Visitors shall be accompanied by an employee of the cannabis facility cannabis business park who has cleared the background check, and possesses a city issued cannabis identification card.

5.50.210 Suspensions, revocations, and modifications.

A. Any permit issued pursuant to this chapter is subject to suspension, modification, or revocation as set forth in subsection B. Unless otherwise stated, the procedures to suspend, modify, or revoke a permit shall be governed by the applicable provisions set forth in Chapter 4.36 of this code. Minor modifications are exempt from this section.

B. The City Manager or designee may suspend, modify, or revoke a permit issued pursuant to this chapter if any of the following, singularly or in combination, occur:

1. Any act or omission in violation of any provision of this code, any condition of approval, any additional terms or conditions imposed pursuant to this chapter, or any other applicable Federal, State, or local law.

2. Operations cease for more than 90 calendar days, including during change of ownership proceedings.

3. Ownership is changed without securing a new permit.

4. Failure to maintain 90 days of security recordings.

5. Failure to allow reasonable inspection of security recordings, records, or the premises by authorized City officials.

6. The denial, revocation, or suspension of Failure to keep or renew a license issued pursuant to Business and Professions Code Section 26000 et seq.

7. A conviction of an owner a responsible person after issuance of the permit which would have disqualified such person pursuant to Section 5.50.050 of this chapter.

8. Failure to comply with any terms and conditions related to the permit.

9. Material misrepresentations or omissions.

10. Failure to pay local taxes as required by this code.

C. Summary Suspension. The City Manager or designee may summarily suspend a permit if a cannabis facility or cannabis business park is conducted in a manner that poses an imminent threat to the public health and safety. The City Manager or designee shall serve written notice to the cannabis facility or cannabis business park explaining the basis for summary suspension.

D. Within 10 days of any summary suspension under subsection C, the City shall initiate a hearing to review the suspension pursuant to the applicable procedures contained in Chapter 4.36 of this code.

5.50.220 Appeals.

A. Within 14 calendar days after the date of a decision of the City Manager or designee to deny a permit, an aggrieved applicant may appeal such action to a hearing officer by filing a written appeal, along with a fee as established by resolution of the City Council, with the City Clerk setting forth the reasons why the decision was not proper.

B. The City Manager or designee shall select the Hearing Officer. Hearing Officers shall be impartial third parties and shall not have any pecuniary interest in the proceeding over which he or she is presiding, nor any pecuniary interest in the outcome thereof.

C. As soon as practicable, but allowing sufficient time for providing notice of the hearing, the hearing officer shall fix a date, time and place for the hearing of the

appeal and shall instruct the citing officer of the same. The City shall prepare and serve a notice of hearing, which shall be in substantially the same form as follows:

You are hereby notified that a hearing will be held before the Administrative Hearing Officer at __________ on the ____ day of _________, ____ at the hour of ____ concerning your appeal filed pursuant to Section 5.50.220 of the Desert Hot Springs Municipal Code. You may be present at the hearing. You may be, but need not be, represented by an attorney. You may present any relevant evidence at the hearing and you will be given a full opportunity to cross-examine all witnesses testifying against you.

D. The City shall cause a copy of the notice of hearing to be provided to each appellant either by causing a copy of the notice to be delivered to each appellant personally or by causing a copy of the notice to be delivered by certified mail, postage prepaid, return receipt requested, and addressed to each appellant at the address shown on the appeal.

E. At the hearing, the hearing officer shall hear any evidence offered either in support of, or against, appellant’s claim, provided such evidence is relevant to the issues of the hearing. The hearing officer has the authority to determine the relevance of any evidence to the hearing and shall not be limited by the technical rules of evidence. The Hearing Officer also has the authority to exclude unduly repetitious and cumulative evidence, regardless of its relevancy.

F. Each party appearing at the hearing shall have the following rights:

1. To call and examine witnesses;

2. To introduce documentary and physical evidence;

3. To cross-examine opposing witnesses;

4. To impeach any witness regardless of which party first called the witness to testify;

5. To rebut evidence; and

6. To be represented by anyone who is lawfully permitted to do so.

G. The Hearing Officer shall issue a written decision within 30 days following the conclusion of the hearing. The Hearing Officer shall cause a copy of the decision and compliance order to be served to each appellant either by causing a copy of the decision to be delivered to each appellant personally or by causing a copy to be delivered by first class mail, postage prepaid, and addressed to each appellant at the address shown on the appeal. The decision of the Hearing Officer shall be final.

H. Any appeal of the Hearing Officer’s decision shall be conducted pursuant to the California Code of Civil Procedure.

5.50.230 Additional regulations.

The City Manager or designee may promulgate such administrative regulations as deemed necessary and appropriate that are consistent with this chapter and applicable State laws and regulations.

5.50.240 Violations.

A. It is unlawful and a public nuisance for any person or entity to violate, or fail to comply with, any provisions or requirements of this chapter, or any condition or regulation adopted pursuant to it.

B. Any violation of any of the provisions of this chapter shall constitute a misdemeanor violation and upon conviction thereof any violation shall be punishable by a fine not to exceed $1,000, or by imprisonment in the County Jail for a period of not more than six months, or by both such fine and imprisonment.

C. In lieu of issuing a misdemeanor citation, the City may issue an administrative citation, and/or assess an administrative fine of up to $1,000 for each violation of this chapter pursuant to the procedures set forth in Title 4.

D. A separate offense occurs for each day any violation of, or failure to comply with, any provision of this chapter is committed, continued, maintained, or allowed to be continued.

E. The prevailing party in any action, administrative proceeding, or special proceeding conducted pursuant to this chapter and associated with the abatement of a public nuisance shall be entitled to recovery of attorney’s fees incurred in such action or proceeding. In no such action, administrative proceeding, or special proceeding shall an award of attorney’s fees to a prevailing party exceed the amount of reasonable attorney’s fees incurred by the City in the action or proceeding.

F. The costs incurred by the City in the abatement of a violation or nuisance may be placed against any privately owned and affected property as either a special assessment pursuant to Section 4.24.410 of this code and California Government Code Section 38771 et seq., as amended from time to time, or a lien pursuant to Section

4.24.420 of this code and California Government Code Section 54988, as amended from time to time.

G. Cumulative Remedies. The remedies provided herein are not exclusive, and in the event of any violation of this chapter, the City may pursue any and all administrative, civil, and criminal remedies, as provided by law or equity, including all remedies under Title 4 of this code.

Section 5. SEVERABILITY
That should any provision, section, paragraph, sentence or word of this ordinance be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections,

paragraphs, sentences or words of this ordinance as hereby adopted shall remain in full force and effect.

Section 6. REPEAL OF CONFLICTING PROVISIONS
That all the provisions of the Municipal Code as heretofore adopted by the City of Desert Hot Springs that are in conflict with the provisions of this ordinance are hereby repealed.

Section 7. AMENDING OF BAIL SCHEDULE
That the City Attorney’s Office is hereby directed to determine whether this ordinance necessitates amendment of the City’s Bail Schedule and to cause such necessary amendments to be made and filed with the local branches of the Superior Court of the County of Riverside.

Section 8. EFFECTIVE DATE
That this ordinance shall be effective thirty days after the second reading of the ordinance.

Section 9. CERTIFICATION
That the City Clerk shall certify to the passage of this ordinance and shall cause the same to be published according to law.

PASSED AND ADOPTED by the City Council of the City of Desert Hot Springs at a regular meeting held on the ___ day of ______, 2023 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

ATTEST: APPROVED:
______________________________ _______________________________ Jerryl Soriano, City Clerk Scott Matas, Mayor
APPROVED AS TO FORM:
________________________________
Jennifer A. Mizrahi, City Attorney

SR-23-041
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: March 7, 2023
Department: Code & Cannabis Compliance
Prepared by: Christina Newsom, Compliance Director
Subject: An Ordinance Amending Regulations to Mobile Food Vending Vehicles (Food Trucks) (Exempt from CEQA pursuant to CEQA Guidelines Section 15061 (b)(3))
RECOMMENDATION:
1) Staff Report
2) Entertain questions of Staff from the City Council;
3) Open the Public Hearing;
4) Take public testimony for those in favor;
5) Take public testimony from those opposed;
6) Take public testimony from those in a neutral position; 7) Close the Public Hearing;
8) City Council discussion and questions to Staff; and
9) Introduce for First Reading and read by title only: "An Ordinance of the City Council of the City of Desert Hot Springs, Amending Chapter 5.52 “Mobile Food Vending Vehicles” of Title 5 “Business Licenses and Regulations” of the Desert Hot Springs Municipal Code." BACKGROUND:

Desert Hot Springs Municipal Code (“DHSMC”) Chapter 5.52 regulates Mobile Food Vending Vehicles also known as “food trucks”.

The City is currently working on a downtown revitalization, investing grant money into small businesses, encouraging tourism and commercial activity, and promoting greater diversity of dining options within the City.

While the City’s current regulations permit food trucks, the regulations are so rigorous that they limit their operations. Additionally, the City’s future proposed events and projects would be hindered by the current regulations limiting the time and place where food trucks can operate. The current regulations interfere with the economic development strides the City has made in the general commercial zone, with developers, and our small business communities.

Moreover, to protect the health and safety of residents and patrons’ food trucks must comply with State, County, and local regulations. The proposed amendments will align regulations with those of the State of California and the County of Riverside to ensure that safe food handling, sanitation, and hand

SR-23-041
washing practices are adhered to. Furthermore, it safeguards patrons by ensuring that permitted food trucks are easily identifiable.

DISCUSSION:

The proposed ordinance seeks to amend the City’s food truck regulations to align with its vision for a thriving commercial community, and protect the safety and welfare of the public as follows:

Hours of Operation:
• A mobile food vending vehicle may only stand or park in the public right-of-way within a commercial zone between the hours of 7:00 a.m. and 2:00 a.m. In all other zones, mobile food vending vehicles may only stand or park in the public right-of-way between the hours of 9:00 a.m. and 9:00 p.m.

County of Riverside Regulations:
• Any mobile food vending vehicle licensed by the County of Riverside as a Category 4 (NonPrepackaged Food Vehicle) or Category 5 (Mobile Food Preparation Unit) mobile food facility shall provide a minimum of one conspicuous trash receptacle within twenty (20) feet of the vehicle. The trash receptacle will serve both employees and customers. • Each vendor shall affix to the lower right side of the windshield of his or her mobile food vending vehicle a current grade card/decal issued by a County of Riverside health inspector.

Additionally, a current Mobile Food Vending Vehicle Permit must be prominently displayed on the vending side of their mobile food vending vehicle. • Each person who drives, operates, or vends from a mobile food vending vehicle shall maintain a current, valid California driver’s license and a current Food Handler Certificate issued by the County of Riverside. The driver’s license and Food Handler Certificate shall be presented for inspection upon request by law enforcement officials or code compliance officers upon request.

CA Health & Safety Code Regulations:
• Pursuant to Health and Safety Code § 114315, mobile food vending vehicles shall be operated within 200 feet travel distance of an approved and readily available toilet and handwashing facility, or as otherwise approved by the City Manager, to ensure that restroom facilities are available to vendor employees whenever the mobile food vending vehicle is stopped to conduct business for more than a one-hour period.

Temporary Use Permits:
• A TUP issued under this subsection shall be valid for a maximum of 30ninety (90) calendar days. • If a vendor is approved for multiple temporary use permits, the aggregate time allowed for vending through the permits shall not exceed 270 calendar days in the commercial downtown zone or 120 days in all other zones in a single calendar year.

SR-23-041
FISCAL IMPACT:

None.

ATTACHMENTS:

Exhibit 1: Ordinance - Food Trucks

ORDINANCE NO. ___

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DESERT HOT SPRINGS, AMENDING CHAPTER 5.52 “MOBILE FOOD VENDING VEHICLES” OF TITLE 5 “BUSINESS LICENSES AND REGULATIONS” OF THE DESERT HOT SPRINGS MUNICIPAL CODE.

WHEREAS, the City of Desert Hot Springs (“City”) is a charter city organized pursuant to Article XI of the California Constitution; and WHEREAS, California Vehicle Code Section 22455 states that local jurisdictions may, by ordinance or resolution, regulate the “type of vending and the time, place, and manner of vending from vehicles upon any street”; and
WHEREAS, Chapter 5.52 “Food Trucks,” of the Desert Hot Springs Municipal Code (“DHSMC”) currently regulates mobile food vending vehicles; and WHEREAS, the City Council seeks to create more opportunities for mobile food vending vehicles to operate within the City; and
WHEREAS, mobile food vendors provide a greater diversity of dining options within the City and encourages tourism and commercial activity; and WHEREAS, the City Council finds that the adoption of this ordinance is categorically exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15061(b)(3) because it can be seen with certainty that there is no possibility that the adoption of this Ordinance in question may have a significant effect on the environment.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DESERT HOT SPRINGS DOES ORDAIN AS FOLLOWS:

Section 1. RECITALS.

The Recitals are hereby incorporated by this reference.

Section 2. AMENDMENT OF CHAPTER 5.52 (MOBILE FOOD VENDING VEHICLES) OF TITLE 5 (BUSINESS LICENSES AND

REGULATIONS) OF THE DESERT HOT SPRINGS MUNICIPAL
CODE
Chapter 5.52 (Mobile Food Vending Vehicles) of Title 5 (Business Licenses and Regulations) of the Desert Hot Springs Municipal Code shall be amended to read as follows:

5.52.005 Purpose.

The City Council expressly finds that vehicles in which produce confections and food products are prepared, cooked, and/or carried for purposes of retail sale on the

public streets are an important aspect of the community. That said, those vehicles can pose special dangers to the public health, safety, and welfare of children and residents in the City of Desert Hot Springs. It is the purpose and intent of the City Council, in enacting this, to provide responsible companies and individuals who engage in the operation of mobile food vending vehicles, as defined in this chapter, with clear and concise regulations to prevent safety, traffic, and health hazards, as well as to preserve the peace.

5.52.010 Definitions.

For the purposes of this chapter, the definitions in this section are adopted and made a part thereof:

A. “Food” or “food products” means any type of edible victuals or beverage.

B. “Vend” or “vending” means to sell, offer for sale, display, barter, exchange, or otherwise give food, food products, merchandise, or prepackaged food from a mobile food vending vehicle. Cannabis products may not be vended.

C. “Vendor” means a person or entity who vends, including an employee or agent of a vendor.

D. “Merchandise” means goods and wares containing a trademark associated with a person or entity operating a mobile food vending vehicle.

E. “Mobile food vending vehicle” means any self-propelled or motorized device or vehicle by which any person or property may be propelled or moved upon a highway, or which may be drawn or towed by a self-propelled or motorized vehicle, from which food, food products, merchandise or prepackaged food are prepared, cooked, sold, offered for sale, displayed, bartered, exchanged or otherwise given by a vendor.

F. “Special event” means an event or activity that is held or conducted pursuant to a special event permit approved by the City per the City’s Special Event Application Review Process as adopted by resolution of the City Council or a temporary use permit approved pursuant to Chapter 17.136 Temporary Use Permits.

G. “Prepackaged food” means any properly labeled and processed food, prepackaged to prevent any direct human contact with the food product upon distribution from the manufacturer, and prepared at an approved source.

5.52.020 Mobile food vending vehicle permit.

A. No mobile food vending vehicle or vendor may vend in the City without first obtaining and having in his or her possession an annual mobile food vending vehicle permit issued by the City in accordance with this chapter.

B. To obtain a mobile food vending vehicle permit, a vendor must complete a permit application on the form approved by the City and file it with the City. The application form shall require the following information:

1. Applicant’s full name and address.

2. Proof of applicant’s identity.

3. Proof of insurance coverage satisfactory to City.

4. A brief description of the type of food products and any merchandise to be sold. This shall include the nature, character and quality of the product.

5. The location and/or streets where the applicant plans to vend.

6. If applicant is employed by another to vend, the name and business address of the employer.

7. A description of the vending vehicle, including logo and color scheme, its registration number, and its license number.

8. A copy of a Riverside County Department of Health permit.

9. A copy of the applicant’s City business license.

10. A certification that the vendor will comply with all local, State and Federal laws regarding food product vending, including all applicable sales tax requirements and this chapter.

11. Any other information deemed appropriate by the City.

C. No application for a new or renewed mobile food vending vehicle permit shall be accepted unless the application is accompanied by a fee in an amount set by a City Council resolution.

D. Upon receipt of a written application for a mobile food vending vehicle permit, the Community Development Director shall conduct an investigation as he or she deems appropriate to determine whether a mobile food vending vehicle permit should be approved. A permit shall be approved, conditionally approved, or denied within 30 calendar days of the filing of an application. The mobile food vending vehicle permit shall be denied if one or more of the following findings is made:

1. The applicant has made a false, misleading or fraudulent statement of fact, or made a material omission of fact, to the City in the application process.

2. The application does not contain the information required by this chapter.

3. The applicant has not satisfied the requirements of this chapter.

4. The applicant has violated any provisions of this code within the past year.

This finding may be excused at the discretion of the Community Development Director if, after an investigation into the facts and circumstances of the prior violations, the

Community Development Director determines that issuance of a mobile food vending vehicle permit would not compromise public safety.

E. The City may condition the approval of any mobile food vending vehicle permit to ensure compliance with this chapter and other applicable laws.

F. Any mobile food vending vehicle permit shall be valid for the term of one year. Upon the expiration of the mobile food vending vehicle permit, an application for renewal shall be filed in a like manner as an application for an original mobile food vending vehicle permit, and such renewal permit shall be approved or conditionally approved only when the requirements for the issuance are met.

G. Any mobile food vending vehicle permit may be suspended or revoked by the Community Development Director or designee for failure to comply with the terms and conditions of this chapter, or permit conditions. Such suspension or revocation shall be made with written notice to the permit holder, stating the grounds for the revocation and the procedures for appealing the same. The permit holder may appeal this decision by filing a written request for appeal with the City Clerk within 15 days of the date of the notice. Any revocation or suspension shall be stayed during the pendency of the appeal unless the immediate public health or safety requires otherwise. Failure to timely file a written request for an appeal hearing constitutes a waiver of the right to an appeal hearing. Selection of a hearing officer and the hearing shall be conducted pursuant to Sections 4.36.060 through 4.36.230 of the Desert Hot Springs Municipal Code, or successor sections. The decision of the hearing officer shall be final.

H. A mobile food vending vehicle permit shall not be assignable or transferable.

5.52.030 General regulations.

A. General Regulations Pertaining to All Mobile Food Vending Vehicles. All Mobile food vendor vehicles must comply with all of the following:

1. The vendor has a valid mobile food vending vehicle permit and business license from the City, including insurance as defined in subsection (A)(9).

2. All food, food products, merchandise, and prepackaged foods that are prepared, stored, cooked, or displayed must be fully enclosed and contained within the mobile food vending vehicle. No open air preparation of food or food products is permitted.

3. The mobile food vending vehicle is in full compliance with all parking and Vehicle Code provisions which apply to the location at which it is parked.

4. The mobile food vending vehicle shall remain parked and immobile while vending.

5. The vendor shall not encroach onto a public sidewalk with any part of its mobile food vending vehicle or any other equipment or furniture related to the operation of its business.

6. The mobile food vending vehicle has a valid permit, certificate or other required approval from the Riverside County Department of Health.

7. All food products sold or provided from the mobile food vending vehicle shall comply with all applicable food labeling requirements established by the State of California and the vendor must obtain all required permits, including, without limitation, health permits, to sell or provide such items.

8. No alcohol beverage, general merchandise or commercial sales other than food are permitted, other than company merchandise.

9. The vendor shall maintain insurance, as deemed acceptable in the reasonable discretion of the City, and provide to the City written certification thereof, against liability for death or injury to any person and damage to property as a result of ownership, operation, or use of its mobile food facilities. In addition, the vendor shall indemnify, defend and hold the City harmless from any claims arising out of or related to the vendor’s ownership, operation, or use of its mobile food facilities, except as otherwise permitted by applicable law.

10. The vendor shall not discharge any liquid (e.g., water, grease, oil, etc.) onto or into any streets, storm drains, catch basins, or sewer facilities. All discharges shall be contained and properly disposed of by the vendor.

11. The vendor shall comply with sound amplification regulations in chapter

8.12 of this code.

12. Vending of cannabis products of any kind is prohibited.

13. Vendors and mobile food vending vehicles shall comply with all applicable Federal, State and local laws.

14. A vendor may locate its mobile food vending vehicle on a street as long as the vendor adheres to the following standards and conditions: The mobile food vending vehicle does not obstruct pedestrian or vehicular traffic.

15. Vending is prohibited on the exposed street and/or vehicular traffic side of the mobile food vending vehicle. The vendor shall not distribute any item from the mobile food vending vehicle in a manner that causes any person to stand in that portion of the street that is between the vehicle and the center of the street. A mobile food vending vehicle is limited to two signs excluding exterior graphics. The exterior sign shall be secured at all times that the mobile food vending vehicle is moving. No sandwich board or other signs are permitted on the ground in the area or on the mobile food vending vehicle.

16. A mobile food vending vehicle may only stand or park in the public right-ofway within a commercial zone between the hours of 7:00 a.m. and 2:00 a.m. dusk. In all other zones, mobile food vending vehicles may only stand or park in the public right-of-way between the hours of 9:00 a.m. and 9:00 p.m.

17. No vendor shall engage in vending unless he or she maintains a clearly designated litter receptacle in the immediate vicinity of the mobile food vending vehicle, marked with a sign requesting use by patrons. Prior to leaving the location, the vendor shall pick up, remove and dispose of all trash generated by the vendor’s operation located within a 25-foot radius of the mobile food vending vehicle’s location. This provision does not include require picking up trash in the street in an unsafe manner. a. The exterior storage of refuse, equipment, or materials associated with the mobile food vending vehicle is prohibited.
b. Any mobile food vending vehicle licensed by the County of Riverside as a Category 4 (Non-Prepackaged Food Vehicle) or Category 5 (Mobile Food Preparation Unit) mobile food facility shall provide a minimum of one conspicuous trash receptacle within twenty (20) feet of the vehicle. The trash receptacle will serve both employees and customers.

18. Each vendor shall affix to the lower right side of the windshield of his or her mobile food vending vehicle a current grade card/decal issued by a County of Riverside health inspector. Additionally, a current Mobile Food Vending Vehicle Permit must be prominently displayed on the vending side of their mobile food vending vehicle.

19. Each person who drives, operates, or vends from a mobile food vending vehicle shall maintain a current, valid California driver’s license and a current Food Handler Certificate issued by the County of Riverside. The driver’s license and Food Handler Certificate shall be presented for inspection upon request by law enforcement officials or code compliance officers upon request.

20. Pursuant to Health and Safety Code § 114315, mobile food vending vehicles shall be operated within 200 feet travel distance of an approved and readily available toilet and handwashing facility, or as otherwise approved by the City Manager, to ensure that restroom facilities are available to vendor employees whenever the mobile food vending vehicle is stopped to conduct business for more than a one-hour period.

21. Exceptions. This section shall not apply to:
a. Vending at construction sites.
b. Vending on school property with consent of school authorities. c. Vending on private property with consent of the property owner, lessee, or legal occupant, and with a valid Temporary Use Permit.

B. No vendor may engage in vending or otherwise operate a mobile food vending vehicle:

1. On any street within a residential zone.

2. On any street designated as part of a Safety Enhancement Zone pursuant to Chapter 12.28 of this code.

3. Within 50 feet from the outer edge of any entrance of any business which serves food on private property during the hours such business is open to the public. This prohibition may be waived with the written consent of such business.

4. Within 30 feet of any street intersection controlled by a traffic light, crosswalk, or stop sign.

5. Within 30 feet of a bus stop.

6. Notwithstanding any other provision in this chapter, Nno mobile food vending vehicle may be located within 300 feet of the nearest property line of any property on which a public or private school building is located, between the hours of 7:00 a.m. and 5:00 p.m. of any school day.

7. Within 500 feet of the nearest property line of any school serving students 18 years of age or younger unless that school is a college, university, or vocational school that primarily serves students older than 18 years of age, unless the mobile food vending vehicle is associated with a certified farmers’ market that is open at the time that the food vending truck is conducting business.

8. When the posted speed limit on the public street, alley or highway is greater than 35 miles per hour.

5.52.040 Mobile food vending vehicle on public or private property (temporary uses).

A. No mobile food vending vehicle may vend or locate on any private property or City-owned property except as permitted in this section. All permitted operations on private property or City-owned property shall otherwise comply with applicable operational standards set forth in this chapter.

B. Mobile food vending vehicles may vend or park locate on a nonresidential private property, including in the adjacent right-of-way, with written permission from the property owner pursuant to a Temporary Use Permit (TUP) or a special event permit.

In addition, any mobile food vending vehicle participating in a City-sponsored event shall not be required to obtain a TUP and may vend as part of the City-sponsored event.

C. Vendors wishing to obtain a TUP pursuant to this section shall file a written application request to do so at least 10 business days prior to the requested date of vending. Such request may be made on a form prescribed by the Community Development Director or designee and shall include, at a minimum, the location, date, and time of the requested vending.

1. The TUP shall limit vending and locating on an applicable private or Cityowned property for three consecutive days at a time, and thereafter restrict the vendor from vending at the same location for three consecutive days. Vendors may alternate between vending on and off an applicable property for the duration of a TUP.

2. The maximum days for all TUP approvals for mobile food vending vehicles shall be limited to 30 calendar days per year for all commercial zones and shall be limited to 90 calendar days per year for all industrial zones. No application for a TUP shall be accepted unless the application is accompanied by a fee in an amount set by City Council resolution.

3. Notwithstanding any other provisions of this chapter, vendors may seek a TUP to vend at construction sites that are operating with all required permits under this code, and located within industrial zones. A TUP issued for construction sites shall be valid for a maximum duration of six months.

4. The vendor may use up to four tall stand-up cocktail-type tables, but, no chairs, fences or other on-site furniture (permanent or otherwise) shall be permitted.

D. Vending from Public Parks. A TUP may be granted to vendors to vend in public parks. Notwithstanding obtaining a TUP, a vendor shall not operate at a public park if a separate organization is currently renting such park, unless the organization grants written permission to the vendor.

1. A TUP issued under this subsection shall be valid for a maximum of 30 ninety (90) calendar days.

2. If a vendor is approved for multiple temporary use permits, the aggregate time allowed for vending through the permits shall not exceed 270 calendar days in the commercial downtown zone or 120 days in all other zones in a single calendar year.

E. Mobile food vending vehicles wishing to vend on City-owned property outside of the public right-of-way must apply for a special event permit or as an approved accessory use as part of a facility use permit from the Public Works Department.

F. Violation of any permit issued under this section shall be grounds for suspension or revocation of a mobile food vending vehicle permit. All permits issued under this chapter may be suspended or revoked in accordance to the procedures of Section 5.52.020.

G. The Community Development Director shall evaluate and consider any request for a TUP. The Community Development Director may approve, conditionally approve or deny the request consistent with the requirements of this chapter and the public health, safety, and welfare. The Community Development Director’s decision may be appealed in the same manner as a mobile food vending vehicle permit.

5.52.050 Regulations for prepackaged foods.

A. The regulations of this section shall apply only to a vendor exclusively selling prepackaged foods. A vendor exclusively selling prepackaged foods shall otherwise comply with the provisions of this chapter.

B. Vendors exclusively selling prepackaged foods may operate as follows.

1. Vend in a residential zone. However, the vendor may not stop on a residential street for longer than necessary to complete a transaction.

5.52.060 Violations.

Violations of this chapter are infractions and a public nuisance subject to all remedies available to the City, including, without limitation, all remedies provided pursuant to Title 4 of this code.

Section 3. SEVERABILITY
That the City Council declares that, should any provision, section, paragraph, sentence or word of this ordinance be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this ordinance as hereby adopted shall remain in full force and effect.

Section 4. REPEAL OF CONFLICTING PROVISIONS
That all the provisions of the Municipal Code as heretofore adopted by the City of Desert Hot Springs that are in conflict with the provisions of this ordinance are hereby repealed.

Section 5. AMENDING OF BAIL SCHEDULE

That the City Attorney’s Office is hereby directed to determine whether this ordinance necessitates amendment of the City’s Bail Schedule and to cause such necessary amendments to be made and filed with the local branches of the Superior Court of the County of Riverside.

Section 6. EFFECTIVE DATE
That this ordinance shall be effective thirty days after the second reading of the ordinance.

Section 7. CERTIFICATION
That the City Clerk shall certify to the passage of this ordinance and shall cause the same to be published according to law.

PASSED AND ADOPTED by the City Council of the City of Desert Hot Springs at a regular meeting held on the ____ day of _______, 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST:
_________________________________
Jerryl Soriano, City Clerk
APPROVED:
_______________________________
Scott Matas, Mayor
APPROVED AS TO FORM:
_________________________________
Jennifer A. Mizrahi, City Attorney

SR-23-045
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: March 7, 2023
Department: City Manager
Prepared by: Erick Becerril, Housing and Community Program Manager Subject: Funding Request for a Public Art Installation at 11940 Palm Drive RECOMMENDATION:
1) Authorize the City Manager to negotiate, finalize, and execute agreements with the Parties (The Seventh Letter and Property Owner of 11940 Palm Drive, etc.) for the mural installation and exterior improvements in an amount not to exceed $84,000.
2) Authorize the City Manager to utilize an amount of up to $50,000 for mural site preparation and spectator improvements of 11940 Palm Dr. and surrounding area.

BACKGROUND:

The City of Desert Hot Springs city-wide arts group has been meeting with various artists over the last several months regarding the revitalization of the Downtown as well as the establishment of an Arts District. The purpose of the Art in Public Places funding is to develop and maintain a visual arts program for the residents and visitors of the City of Desert Hot Springs, to increase tourism in the community, and to enhance the environment and unique character of Desert Hot Springs by providing for the acquisition and maintenance of public art. The City of Desert Hot Springs has been presented a proposal by a local business owner, Casey Zoltan, who runs and operates The Seventh Letter and Known Gallery.

DISCUSSION:

The Seventh Letter was established in 1998 and is a well-known collective of street artists and designers based in Los Angeles and Southern California. The collective comprises artists who specialize in different mediums, such as graphic design, photography, and painting. The Seventh Letter has been involved in various art shows and events such as Art Basel (Miami, FL), South by South West (Austin, TX), Life is Beautiful (Las Vegas, NV), and ComplexCon (Long Beach, CA), as well as collaborated with numerous brands such as Nike, Converse, Levi’s, and many others. Known Gallery has gained recognition for its exhibitions that showcase the works of emerging and established artists and has hosted shows, book signings, film screenings, and music performances.

The proposal submitted is for a unique art installation on an entire building on the corner of Palm Dr. and Pierson Blvd. (11940 Palm Dr.), the main entrance to Downtown Desert Hot Springs. Casey has met with staff to discuss the best artist for the launch of the City’s Downtown revitalization efforts, to which he has chosen an artist. TRAV, is an American artist, best known for his monumental wall pieces.

The Seventh Letter and TRAV have proposed an immersive mural (Exhibit 2) with bold patterns, unique compositions, and imagery that is cohesive with the history of Desert Hot Springs. If approved, this

SR-23-045
mural will be TRAV's largest outdoor art installation ever installed, and he believes this will be a landmark for a community because visitors will get to immerse themselves as they walk around the entire building. The sponsorship amount includes a launch party for the completion of the mural that will be hosted during the month of April.

On March 1st, 2023 Staff met with the property owner of 11940 Palm Dr., Samion Shtockmaster, and received verbal approval for the installation of the mural. The owner agrees to negotiate final terms of art installation with the City Manager and City Attorney. The Desert Hot Springs Municipal Code (DHSMC) Art in Public Places Program promotes the public interest and general welfare through the acquisition and installation of public art and is established to enhance the City’s aesthetic environment through public art.

The mural's review has been expedited due to the timing of the mural completion aligning with neighboring music festivals and Desert X's tourism for the local businesses and spas. Mr. Shtockmaster has agreed to allow the City to include terms of use of the parking lot space for events in the Downtown as part of the City's Downtown Revitalization Efforts. The amount being requested includes the expenditure allocation of up to $50,000 for the mural site preparation and spectator improvements; enhancement of surrounding landscaping, preparation and removal of existing trees/shrubbery in the area adjacent to the building as well as lighting for safety and aesthetics that will compliment the mural.

The mural is anticipated to attract tourism year round and it is imperative that lighting and visual blight is addressed in order to enhance the overall presence of the Mural and surrounding area as part of the art installation.

FISCAL IMPACT:

This expense will utilize the Art in Public Places Fund Contract Services line item, account number 110- 4320-50-72-0000. Any additional required appropriations will be included in the FY22-23 Year End Budget Adjustments. The Art in Public Places Fund has sufficient fund balance to cover this expenditure.

ATTACHMENTS:

Exhibit 1
Exhibit 2

DOWNTOWN
MURAL

INSTALLATION
11940 Palm Dr.

Desert Hot Springs, CA
City of Desert Hot Springs Art In Public Places
02/28/23
Prepared For :

Ci ty Counci l

Casey Zoltan is the owner and founder of The Seventh Letter and Known Gallery, two world renowned names in the street art world.

The Seventh Letter was established in 1998 and is well-known collective of street artists and designers based in Los Angeles and Southern California. Casey has relocated The Seventh Letter headquarters to Downtown Desert Hot Springs. The collective comprises of artists who specialize in different mediums, such as graphic design, photography, and painting. The Seventh Letter has been involved in various art shows and events such as Art Basel (Miami, FL), South by South West (Austin, TX), Life is Beautiful (Las Vegas, NV), and ComplexCon (Long Beach, CA), as well as collaborated with numerous brands such as Nike, Converse, Levi’s, and many others.

Known Gallery has gained recognition for its exhibitions that showcase the works of emerging and established artists and has hosted shows by many acclaimed artists such as Anthony Lister, RISK, and Craola. In addition to displaying art, Known Gallery has also organized events such as book signings, film screenings, and music performances.

Casey and the artists at Known Gallery have collaborated with other art institutions and organizations to support the growth of the art community in Los Angeles. The gallery has participated in various charitable events and auctions to raise funds for social causes and provide support to aspiring artists.

Overall, both The Seventh Letter and Known Gallery have played significant roles in the development of the street art scene in Los Angeles, The Coachella Valley, and other parts of the world.

Casey as well is a part of Kreatr, a team of innovators from California of the art and creative industry through their Web3 iOS app and technologies. The Kreatr app facilitates connections between artists, collectors, and curators. It enables the certification of physical and digital goods. Kreatr has also formed partnerships with some of the biggest names in the industry, including Known Gallery, Atmosphere, and Flow. The collaboration with Kreatr will allow the City of Desert Hot Springs the ability to showcase the art installations to people all over the world.

ORGANIZATION
City of Desert Hot Springs Art In Public Places
02/28/23
Organization
Information: Casey Zoltan, The Seventh Letter, Known Gallery Draf t Staf f Repor t

ARTIST
TRAV, is an American artist, best known for his dynamic, vivid and colorful collage paintings and his monumental wall pieces. He utilizes bold patterns, unique compositions and the juxtaposition of past and present subject matter in his works to evoke curiosity in those that come across the works bold presence. TRAV’s work documents technologies role disrupting the physical landscape through commerce and has chosen to focus on creating public work around this narrative to give back to the community. TRAV collages photographs of vintage signs and typography with in his various compositions that overlay and interact with geometric patterns and gestures.

Trav, is a native of California and discovered his love for creating art in public spaces through graffiti starting in 1997. He produces numerous public works worldwide through a combination of techniques learned through graffiti and the formal language of commercial sign painting. Conscious of supporting the existing architecture, TRAV dramatically transforms his environments by re-creating existing objects and elements and infusing his work into the existing landscape.

TRAV paints public art because he see value it brings to the residents that live where his art is installed and get to take pride of their community. This mural will be TRAV's largest outdoor art installation ever installed and he believes this will be a landmark for a community because visitors will get to immerse themselves as they walk around the entire building.

City of Desert Hot Springs Art In Public Places
02/28/23
Ar t i s t
Informat ion: TRAV
Draf t Staf f Repor t

THE MURAL
The scope of work
City of Desert Hot Springs Art In Public Places
02/28/23
Addres s :
1 1940 Palm Dr .

Deser t Hot Spr ings , C A
Draf t Staf f Repor t

ARTIST SCOPE OF WORK
Preparation of the site, painting on all walls painting on all associated block walls (both sides), trellis areas, visible roof area and walls above roof line, and all artwork included in the renderings.

The City will be given rights for the utilization of this artwork for its media platforms. The scope of work will included a protective coating that will help with any future vandalism.

The artist will take care of any maintenance issues for 24 months which will include any touch-ups after the completion of the project.

The Seventh Letter will work in collaboration with the City of Desert Hot Springs on the review and design of all future signage at 11940 Pierson Blvd.

The Seventh Letter will collaborate with Kreatr to host an educational workshop for youth and artists in the community to educate them on ways to utilize Kreatr to sell their artwork.
25% ($21,000) will be disbursed at initiation of contract. 25% ($21,000) will be disbursed after prep-work is completed and pre-walk through with City Staff is approved.
25% ($21,000) will be disbursed after mural is completed 25% ($21,000) will be disbursed prior to the "Launch Party".

Artist Installation: $40,000.00
Prep and art supplies: $6,000.00
Lifts: $3,000.00
Curator/Marketing/Event: $20,000.00
Videography/Photography: $5,000.00
Travel/Hotels: $2,000.00
Assistants: $3,000.00
200 Promo items: $5,000.00 (This includes pins, t-shirts, and other swag) Total: $ 84,000.

The $84,000 will include the following scope of work:

A formal agreement will be drafted with property owner, muralist/contractor, and City of Desert Hot Springs if approved by Council.

City of Desert Hot Springs Art In Public Places
02/28/23
Addres s :
1 1940 Palm Dr .

Deser t Hot Spr ings , C A
Draf t Staf f Repor t

CITY OF DHS SCOPE OF WORK
The Scope of work will be completed by the City of Desert Hot Springs as an enhancement for the Downtown Revitalization efforts.

The new exterior landscaping includes maintenance and enhancements (as-needed) to the right-of-way City landscaping.

The new exterior lighting includes up-lighting that will enhance the views of the mural in the evening and night.

The work includes the maintenance and enhancement of all surrounding landscaping areas on the parcel.

Cost of Mural: $84,000
Cost of DHS: $50,000
Total Amount Requested: $134,000
Landscaping enhancements: $20,000
Repair Exterior Stucco: $10,000.00
New Exterior Lighting: $20,000.00
Total: $ 50,000.

The $50,000 will include the following scope of work:

The Breakdown of Total Amount
City of Desert Hot Springs Art In Public Places
02/28/23
Addres s :
1 1940 Palm Dr .

Deser t Hot Spr ings , C A
Draf t Staf f Repor t

SCOPE OF WORK
Paint Roof and all adjacent block walls
Paint area behind garden wall and
surrounding block wall.

Paint entire trellis.

Paint walls and ballard.
restore sign and use this space to write
about the artist/City of DHS.

Ask Management.

Paint roof areas on all sides, all
block wall areas around steps, and
surrounding garden walls.

Paint all adjacent block walls
Paint all adjacent block walls
Paint all adjacent block walls Page 81 of 107

SCOPE OF WORK
Paint all adjacent block walls
Paint all adjacent block walls
Paint entire trellis.

Paint all adjacent block walls and stairs.

Paint all adjacent block walls
Paint all adjacent block walls
and both sides of the sign.

Palm Pierson
Corner

SR-23-042
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: March 7, 2023
Department: Code & Cannabis Compliance
Prepared by: Christina Newsom, Compliance Director
Subject: Resolution Authorizing the Extension of the Service Fee Collected on Behalf of the Riverside County Abandoned Vehicle Abatement Service Authority Until May 31, 2034
RECOMMENDATION:

Adopt a Resolution of the City Council of the City of Desert Hot Springs, California, authorizing the extension of the service fee collected on behalf of the Riverside County Abandoned Vehicle Abatement Service Authority until May 31, 2034.

BACKGROUND:

The Riverside County Abandoned Vehicle Abatement Service Authority (“Authority”) was formed on or about June 1, 1994, according to the provisions of California Vehicle Code sections 9250.7 and 22710 enacted by the Legislature in 1990 which authorizes the establishment of a service authority and imposition of a service fee on all registered motor vehicles located within a county. Beginning in June 1994 and continuing to the present, the Authority has been the recipient of service fees collected on its behalf by the California Department of Motor Vehicles.

The service fees received by the Authority are used to reimburse local governmental agencies for a portion of their costs incurred as a result of the abatement, removal, and disposal as public nuisances of any abandoned, wrecked, dismantled, or inoperative vehicles or parts thereof; and the Authority allocates and distributes service fee proceeds to each City agency according to the formula outlined in California Vehicle Code section 22710.

Pursuant to the City of Desert Hot Springs Municipal Code chapter 10.52, the City of Desert Hot Springs removes abandoned, wrecked, dismantled, or inoperative vehicles within its jurisdiction. The City of Desert Hot Springs receives a portion of the service fee from the Riverside County Abandoned Vehicle Abatement Service Authority for the abatement of abandoned, wrecked, dismantled, or inoperative vehicles. The service fee collected as part of the Abandoned Vehicle Abatement Service Authority program is set to expire on May 31, 2024.

The Legislature amended California Vehicle Code section 9250.7 to allow for an extension of the service fee collected as part of the Abandoned Vehicle Abatement program in increments of up to ten (10) years each if the Riverside County Board of Supervisors, by a two-thirds vote, and a majority of the cities comprising a majority of the population of the incorporated areas within the County adopt resolutions providing for the extension of the service fee. It is desirable to the City of Desert Hot Springs

SR-23-042
to have the Abandoned Vehicle Abatement program continue beyond its current termination date of May 31, 2024.

DISCUSSION:

Abandoned, inoperable, wrecked, and dismantled cars are one of the leading Code Compliance complaints in the City. These vehicles can be on both private and public properties and contribute to blight, health and safety issues, and public nuisances.

The City of Desert Hot Springs currently has one full-time contract Code Compliance Officer dedicated to abandoned vehicle abatement. In the 2021-2022 fiscal year, she opened over 400 cases, conducted 1,187 inspections, and issued over 700 notices and citations for abandoned, in-operable, wrecked, or dismantled vehicles in the City.

Additionally, she submitted quarterly reports for reimbursement to the County for funds of $17,809.68 for Quarter 1 (July-Sept 2021), $14,519.01 for Quarter 2 (Oct-Dec 2021), $13,742.13 for Quarter 3 (Jan-Mar 2022), and $21,839.56 for Quarter 4 (Apr-Jun 2022). These reimbursements cover 100% of the cost of the Officer’s contract, cell phone bill, gas expenses, and uniforms.

In April 2021, the City was able to purchase a new Ford Ranger 4x4 truck paid for entirely with abandoned vehicle abatement funds. This vehicle is to be used exclusively for abandoned vehicle abatement inspections for 5 years. After that time, the City can use the vehicle in any other capacity.

The City of Desert Hot Springs's continued participation in the Riverside County Abandoned Vehicle Abatement Authority would be a benefit to our community by keeping abandoned and inoperable vehicles out of the public right-of-way and out of sight on private properties.

FISCAL IMPACT:

None.

ENVIRONMENTAL ANALYSIS:

The following resolution is categorically exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15061(b)(3) because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.

ATTACHMENTS:

Exhibit 1 - Resolution AVA Program

RESOLUTION NO. 2023-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DESERT

HOT SPRINGS, CALIFORNIA, AUTHORIZING THE EXTENSION OF THE

SERVICE FEE COLLECTED ON BEHALF OF THE RIVERSIDE COUNTY

ABANDONED VEHICLE ABATEMENT SERVICE AUTHORITY UNTIL
MAY 31, 2034.

WHEREAS, the City of Desert Hot Springs (“City”) is a charter city, duly organized under the laws of the State of California; and
WHEREAS, the Riverside County Abandoned Vehicle Abatement Service Authority (“Authority”) was formed on or about June 1, 1994, pursuant to the provisions of California Vehicle Code sections 9250.7 and 22710 enacted by the Legislature in 1990 which authorizes the establishment of a service authority and imposition of a service fee on all registered motor vehicles located within a county; and WHEREAS, beginning in June 1994 and continuing to the present, the Authority has been the recipient of service fees collected on its behalf by the California Department of Motor Vehicles; and
WHEREAS, the service fees received by the Authority are used to reimburse local governmental agencies for a portion of their costs incurred as a result of the abatement, removal and disposal as public nuisances of any abandoned, wrecked, dismantled, or inoperative vehicles or parts thereof; and
WHEREAS, the Authority apportions and distributes service fee proceeds to each member agency according to the formula set forth in California Vehicle Code section 22710; and
WHEREAS, pursuant to City of Desert Hot Springs Municipal Code chapter 10.52, the City of Desert Hot Springs removes abandoned, wrecked, dismantled, or inoperative vehicles within its jurisdiction; and
WHEREAS, the City of Desert Hot Springs receives a portion of the service fee from the Authority for the abatement of abandoned, wrecked, dismantled, or inoperative vehicles; and
WHEREAS, the service fee collected as part of the Abandoned Vehicle Abatement Service Authority program is set to expire on May 31, 2024; and WHEREAS, the Legislature amended California Vehicle Code section 9250.7 to allow for an extension of the service fee collected as part of the Abandoned Vehicle Abatement program in increments of up to ten (10) years each if the Riverside County Board of Supervisors, by a two-thirds vote, and a majority of the cities comprising a majority of the population of the incorporated areas within the County adopt resolutions providing for the extension of the service fee; and

WHEREAS, it is desirable to the City of Desert Hot Springs to have the Abandoned Vehicle Abatement program continue beyond its current termination date of May 31, 2024.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DESERT HOT SPRINGS DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. RECITALS.

That the Recitals set forth above are true and correct and are hereby incorporated herein by this reference.

Section 2. EXTENSION OF ABANDONED VEHICLE ABATEMENT
PROGRAM.

That the City Council of the City of Desert Hot Springs, California approves the extension of the service fee collected on behalf of the Riverside County Abandoned Vehicle Abatement Service Authority to May 31, 2034.

Section 3. CERTIFICATION.

That the City Clerk shall certify to the passage and adoption of this resolution, enter the same in the book of original resolutions of the City and make a minute of passage and adoption thereof in the records of the proceedings of the City Council in the minutes of the meeting at which the same is passed and adopted.

Section 4. SEVERABILITY.

That if any provision, section, paragraph, sentence or word of this Resolution be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this Resolution as hereby adopted shall remain in full force and effect.

Section 5. EFFECTIVE DATE.

That this Resolution shall take effect upon its adoption.

PASSED AND ADOPTED by the City Council of the City of Desert Hot Springs at a regular meeting held on the ___ day of ______, 2023 by the following vote:

AYES:

NAYS:

ABSENT:

ABSTAIN:

ATTEST: APPROVED:
_______________________________ _______________________________ Jerryl Soriano, City Clerk Scott Matas, Mayor
APPROVED AS TO FORM:
_________________________________
Jennifer A. Mizrahi, City Attorney

SR-23-047
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: March 7, 2023
Department: City Clerk
Prepared by: Jerryl Soriano, City Clerk
Subject: City Branded Apparel for City Commissioners
RECOMMENDATION:

Discuss and provide direction to Staff.

DISCUSSION:

City Commissioners perform public-facing duties and occasionally represent the City at various functions and events. Staff has received requests to provide City branded apparel to City Commissioners and therefore, Staff seeks the City Council's direction.

SR-23-044
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: March 7, 2023
Department: City Clerk
Prepared by: Jerryl Soriano, City Clerk
Subject: City Council Special Meeting (Closed Session) Minutes: February 16, 2023 City Council Regular Meeting Minutes: February 21, 2023 RECOMMENDATION:

Approve the Minutes as presented; or as corrected.

ATTACHMENTS:

Draft City Council Special Meeting (Closed Session) Minutes - February 16, 2023 Draft City Council Regular Meeting Minutes - February 21, 2023

City of Desert Hot Springs

DRAFT ACTION MINUTES
City Council Meeting
4:30 PM - Thursday, February 16, 2023
Council Chambers

CALL TO ORDER
Mayor Matas called the Closed Session to order at 4:30 P.M.

ROLL CALL

Present:

Council Members: Russell Betts, Gary Gardner, Jan Pye
Mayor Pro Tem: Roger Nuñez
Mayor: Scott Matas

PUBLIC COMMENTS
None.

Jennifer Mizrahi, City Attorney, announced the Closed Session Item.

CLOSED SESSION:

1. PUBLIC EMPLOYEE PERFORMANCE EVALUATION:

Pursuant to Government Code Section 54957(b): City Manager

CITY ATTORNEY REPORT ON CLOSED SESSION
Jennifer Mizrahi, City Attorney, advised that the City Council voted 5-0 to appoint Doria Wilms as Interim City Manager.

ADJOURN
Mayor Matas adjourned the meeting at 6:03 P.M.

Jerryl Soriano, CMC, City Clerk

City of Desert Hot Springs

DRAFT ACTION MINUTES
City Council Meeting
6:00 PM - Tuesday, February 21, 2023
Council Chambers
CLOSED SESSION - 4:00 P.M.

CALL TO ORDER
Mayor Matas called the Closed Session to order at 4:00 P.M.

ROLL CALL

Present:

Council Members: Russell Betts, Gary Gardner, Jan Pye
Mayor Pro Tem: Roger Nuñez
Mayor: Scott Matas

PUBLIC COMMENTS
None.

Jennifer Mizrahi, City Attorney, announced the Closed Session items.

CLOSED SESSION:

1. CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
(Paragraph (1) of subdivision (d) of Section 54956.9)
Name of case: Supporters Alliance for Environmental Responsibility (SAFER) v. City of Desert Hot Springs, et al, Riverside County Court Case Number CVPS2300062

2. CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
(Paragraph (1) of subdivision (d) of Section 54956.9)
Name of case: Sierra Club v. City of Desert Hot Springs, et al, Riverside County Court Case Number CVPS2300057

3. CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
(Paragraph (1) of subdivision (d) of Section 54956.9)
Name of case: Desert Hot Springs Real Properties, Inc. v. City of Desert Hot Springs; Riverside County Court, Case Number CVPS2300254

City Council
February 21, 2023

4. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Pursuant to Government Code Section 54956.8:

Property: APN 641-262-010
Agency Negotiator: Doria Wilms, Interim City Manager
Jennifer Mizrahi, City Attorney
Lynn F. Coker, Broker
Negotiating Parties: Nancy Portolesi
Under Negotiation: Price and Terms
PRESENTATIONS - 5:15 P.M.

A moment of silence was held in memory of community member, Judy Shea.

Certificates of Recognition Presented to DHS Eagles Cheer Mayor Matas and the City Council presented Certificates of Recognition to DHS Eagles cheerleaders for taking first place at a cheer competition.

Service Recognition of Former Commission Members
Mayor Matas and the City Council presented Certificates of Recognition the following individuals for their service on City Commissions: Derward Cook, Richard Duffle (not present), Lee Eastman, Requita Grant (not present), Robert Griffith, Ted Mayrhofen, and Walt Meyer.

REGULAR SESSION - 6:00 P.M.

CALL TO ORDER
Mayor Matas called the Regular Session to order at 6:00 P.M.

ROLL CALL

Present:

Council Members: Russell Betts, Gary Gardner, Jan Pye
Mayor Pro Tem: Roger Nuñez
Mayor: Scott Matas

INVOCATION
Pastor Bobby Umaña gave the Invocation.

PLEDGE OF ALLEGIANCE
Councilmember Pye led the Pledge of Allegiance; and spoke regarding American inventor, Garret Morgan, in honor of Black History Month.

City Council
February 21, 2023

CITY ATTORNEY REPORT ON CLOSED SESSION
Jennifer Mizrahi, City Attorney, advised that there was no reportable action.

APPROVAL OF AGENDA
ACTION: Approve the February 21, 2023 Regular Meeting agenda, and approve the Consent Calendar in its entirety.

Moved by Council Member Pye
Seconded by Council Member Nuñez
Carried 5-0 by the following votes:

AYES: Betts, Gardner, Pye, Nuñez, and Matas

PUBLIC COMMENTS
Tom Moen spoke regarding Desert Hot Springs.

CITY MANAGER REPORT
Geoffrey Buchheim, Administrative Services Director, provided a financial update.

Nicholas Haecker, Public Works Director, provided an update regarding various Public Works projects.

Roberta Crncic, Recreation and Community Services Director, provided Recreation Center updates and announcements.

MAYOR AND COUNCIL MEMBER REPORTS
Councilmember Pye reported on the various meetings and events she attended.

Mayor Pro Tem Nuñez reported on the various meetings and events he attended.

Councilmember Gardner reported on the various meetings and events he attended.

Councilmember Betts reported on the various meetings and events he attended.

Mayor Matas reported on the various meetings and events he attended.

ADMINISTRATIVE CALENDAR:

5. 2023 Desert X Exhibition Participation and Sponsorship Request in the Amount of $35,000

City Council
February 21, 2023
Recommendation:

Consider the approval of:
1) Participation in the 2023 Desert X Exhibition;
2) Sponsorship in the amount of $25,000, to support the 2023 Desert X Exhibitions; and
3) Sponsorship in the amount of $10,000, to support the 2023 Desert X Closing Ceremony.

Staff Report - SR-23-031 - Pdf
Erick Becerril, presented the staff report and responded to questions.

Jenny Gil Schmitz, Executive Director of Desert X, addressed the City Council and responded to questions.

Gerald McKenna spoke in support and inquired about accessibility for the disabled.

Tome Moen spoke in support.

ACTION: Approve Staff recommendation.

Moved by Mayor Pro Tem Gardner
Seconded by Council Member Betts
Carried 5-0 by the following votes:

AYES: Betts, Gardner, Pye, Nuñez, and Matas

6. Award Professional Services Agreement for Cannabis Consultant Planner Recommendation:

Authorize the City Manager to execute the Professional Services Agreement for cannabis consultant services with AM LLC, in the amount not to exceed $230,000 per year, with a contingency of $46,000 (20%) for any additional work as approved by the City, which brings a total budget of $276,000 per year, for a two-year term.

Staff Report - SR-23-036 - Pdf
Daniel Porras, Assistant City Manager, presented the staff report and responded to questions.

ACTION: Approve Staff recommendation.

Moved by Council Member Betts
Seconded by Council Member Pye
Carried 5-0 by the following votes:

AYES: Betts, Gardner, Pye, Nuñez, and Matas

City Council
February 21, 2023

7. Geographic Information Systems (GIS) Services Agreement Recommendation:

Authorize the City Manager to execute a Professional Service Agreement between Infinity Technologies, and the City of Desert Hot Springs, for Geographic Information Systems (GIS) Services in the amount not to exceed $105,000 per year for a two-year term.

Staff Report - SR-23-033 - Pdf
Daniel Porras, Assistant City Manager, presented the staff report and responded to questions.

ACTION: Approve Staff recommendation.

Moved by Council Member Pye
Seconded by Mayor Pro Tem Gardner
Carried 5-0 by the following votes:

AYES: Betts, Gardner, Pye, Nuñez, and Matas

8. Mid-Year Budget Adjustments for the 2022-2023 Fiscal Year Recommendation:

Adopt a Resolution of the City Council approving the mid-year budget adjustments for the 2022-2023 Fiscal Year.

Staff Report - SR-23-037 - Pdf
Geoffrey Buchheim, Administrative Services Director, presented the staff report and responded to questions.

A discussion ensued.

ACTION: Approve Staff recommendation and adopt Resolution No. 2023-004.

Moved by Mayor Pro Tem Gardner
Seconded by Council Member Pye
Carried 5-0 by the following votes:

AYES: Betts, Gardner, Pye, Nuñez, and Matas
CONSENT CALENDAR:

9. City Council Regular Meeting Minutes: February 7, 2023 Recommendation:

Approve the Minutes as presented; or as corrected.

Staff Report - SR-23-035 - Pdf
ACTION: Approved the Minutes as presented.

City Council
February 21, 2023

10. Second Reading and Adoption of An Ordinance Amending Section

4.16.010 "Unlawful Acts - Public Nuisances" of Chapter 4.16 "Public Nuisances" of Title 4 "Code Enforcement"; Section 5.44.080 "Operational Requirements and Standard Conditions" of Chapter 5.44 "Vacation Rentals" of Title 5 "Business Licenses and Regulations"; Section

8.04.150 "Storage on Premises - Placement for Collection" of Chapter

8.04 "Waste Disposal" of Title 8 "Health and Safety"
Staff Report - SR-23-032 - Pdf
ACTION: Approved Staff recommendation and adopt Ordinance No 774: "An Ordinance of the City Council of the City of Desert Hot Springs, California amending Section 4.16.010 “Unlawful Acts - Public Nuisances” of Chapter 4.16 “Public Nuisances” of Title 4 “Code Enforcement”; Section 5.44.080 “Operational Requirements and Standard Conditions” of Chapter 5.44 “Vacation Rentals” of Title 5 “Business Licenses and Regulations”; Section

8.04.150 “Storage on Premises - Placement for Collection” of Chapter 8.04 “Waste Disposal” of Title 8 “Health and Safety.”

PUBLIC COMMENTS
None.

ADJOURN
Mayor Matas adjourned the meeting at 7:20 PM.

Jerryl Soriano, CMC, City Clerk

SR-23-038
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: March 7, 2023
Department: Administrative Services
Prepared by: Viviana Gonzalez-Osorio, Management Analyst Subject: Contracts Management Report as of February 15, 2023 RECOMMENDATION:

Receive and file.

DISCUSSION:

Of the FY 2022-2023 Consolidated General Fund adopted operating budget of $31.24 Million, $6.66 Million, or 21% is comprised of contract services. To facilitate management of the City’s contracts, a Contracts Management Report (Exhibit 1) has been developed and is submitted to the City Council for informational purposes. This report is comprised of operational contracts over $5,000.00 in support of daily City operations. This report assists staff in proactively administering contracts.

FISCAL IMPACT:

None.

ATTACHMENTS:

Exhibit 1 - Contracts Management Report as of February 15, 2023

City of Desert Hot Springs
Contracts Management Report
March 07, 2023
Balance as of February 15, 2023
Service/Commodity Provided Current
Contractor/ Consultant
Responsible
Department / Division
Annual Contract
Amount Total Contract Amount
Total
Contract
Remaining
Balance
Contract
Effective
Date
Contract Expiration
Date
JOHN H. FURBEE AQUATICS CENTER POOL SERVICES 1 STOP POOL PROS Public Works $ 144,890.04 $ 144,890.04 $ 60,371.85 7/2/2019 6/30/2023 CITY WIDE ZONE 3 & 4 LANDSCAPE SERVICES DESERT CONCEPTS CONSTRUCTION Public Works $ 223,140.00 $ 223,140.00 $ 92,975.00 7/1/2019 6/30/2023 CITYWIDE JANITORIAL SERVICES KELLER MEYER BERGENSONS SERVICES LLC Public Works $ 268,092.12 $ 268,092.12 $ 139,169.46 7/1/2019 6/30/2023 CITY WIDE ZONE 1 & 2 LANDSCAPE SERVICES MARIPOSA LANDSCAPES, INC. Public Works $217,712.48 $217,712.48 $113,257.83 7/1/2021 6/30/2023 SENIOR CENTER MANAGEMENT MIZELL SENIOR CENTER Public Works $ 203,755.00 $ 203,755.00 $ 75,084.00 3/1/2019 6/30/2023 CITYWIDE STREET SWEEPING SERVICES SWEEPING CORPORATION OF AMERICA Public Works $ 98,682.10 $ 98,682.10 $ 41,117.60 1/1/2022 6/30/2023 CITYWIDE TRAFFIC SIGNAL SERVICES YUNEX LLC Public Works $ 56,980.00 $ 56,980.00 $ 35,444.79 7/1/2015 6/30/2023 SPECIAL DISTRICT ADMIN SERVICES WEBB MUNICIPAL FINANCE LLC Admin Services Agreement for a period of (3)
years beginning FY23-24
and continue until FY25-26 Not
to exceed $278,496. $278,496 $278,496 1/17/2023 3/31/2026 PROPERTY TAX AUDIT SERVICES HDL (HINDERLITER, DELLAMAS) COREN & CONE Admin Services Per Base Fixed Services Fee $94,887 $12,836 5/23/2017 6/30/2023 MARIJUANA DISPENSARY AUDIT SERVICES HDL (HINDERLITER, DELLAMAS) COREN & CONE Admin Services Not to exceed $104,500 through
FY 23-24 $104,500 $21,000 10/26/2016 6/30/2024
AUDIT SERVICES THE PUN GROUP Admin Services
TO 06/30/17: $68,440
FY 17-18: $69,809
FY 18-19: $71,204
FY 19-20: $72,628
FY 20-21 $74,082
FY 21-22 $75,563 $431,726 $112,864 4/18/2017
Contract expires after completion
of the FY 21-22 Audit
DEBRIS ABATEMENT PROGRAM DESERT VALLEY DISPOSAL (DVD) Admin Services $206,915 $206,915 $86,215 7/1/2021 Month to Month GRANT WRITING, RESEARCH & CONSULTING SERVICES EVAN BROOKS ASSOCIATES, INC. Admin Services $72,031 $72,031 $0 11/17/2020 Not to exceed annual dollar
amount
BANKING SERVICES MUFG UNION BANK OF CALIFORNIA Admin Services Per MUFG Union Ban k Price
Schedule
Per MUFG Union Ban k Price
Schedule N/A 5/19/2015 5/19/2023
FISCAL BUDGETING CONSULTING SERVICES URBAN FUTURES Admin Services $75,000.00 Annually (Total 3
year contract amendment not to
exceed $225,000.) $225,000 $155,611 10/10/2020 6/30/2023 GENERAL LEGAL SERVICES STREAM KIM City Manager Rate Schedule Rate Schedule Rate Schedule 7/1/2021 Open LITIGATION LEGAL SERVICES STREAM KIM City Manager Rate Schedule Rate Schedule Rate Schedule 7/1/2021 Open CANNABIS COMPLIANCE SERVICES CANNABIS COMPLIANCE SOLUTIONS Code & Compliance Per Rate Schedule - not to
exceed $165,600.

Month to Month $13,800
per month N/A 7/1/2020 Month to Month

City of Desert Hot Springs
Contracts Management Report
March 07, 2023
Balance as of February 15, 2023
Service/Commodity Provided Current
Contractor/ Consultant
Responsible
Department / Division
Annual Contract
Amount Total Contract Amount
Total
Contract
Remaining
Balance
Contract
Effective
Date
Contract Expiration
Date

CODE ENFORCEMENT/VEH ABATEMENT CONTRACT
SERVICES PAMELA CHAFFIN Code & Compliance $50,000 $50,000 $25,518 8/1/2022 24 Hr. Termination Clause FIRE SERVICES RIVERSIDE COUNTY FIRE DEPARTMENT City Manager TOTAL FOR EACH FY: 2021-
2022 $1,831,996 2022-2023
$1,948,842 2023-2024
$2,071,434 $5,852,272 $4,939,047 7/1/2021 7/30/2024
COUNCIL VIDEO AWESOME DUDE VIDEO City Manager / City Council NA NA NA 10/1/2012 Month to Month

LEGAL SERVICE LIEBERT CASSIDY
City Manager / Human
Resources Rate Schedule Rate Schedule Rate Schedule 2/4/2014 Month to Month TEMP SERVICES ROBERT HALF/OFFICE TEAM/CCOUNTEMPS Human Resources Rate Schedule Rate Schedule Rate Schedule 6/21/2022 Open TEMP SERVICES ATWORK PERSONNEL SERVICES Human Resources Rate Schedule Rate Schedule Rate Schedule 6/21/2022 Open TEMP SERVICES PROPER SOLUTIONS Human Resources Rate Schedule Rate Schedule Rate Schedule 6/21/2022 Open TEMP SERVICES LABOR FINDERS Human Resources Rate Schedule Rate Schedule Rate Schedule 6/21/2022 Open BUILDING PLAN CHECK INSPECTION SERVICES SCOTT FAZEKAS & ASSOCIATES Community Development $500,000 Annually plus
$100,000 contingency for a total
annual not to exceed of
$600,000. Not to Exceed $600,000
$1,319.93 (not
including $100,000
contingency) 9/7/2021 6/30/2024

BUILDING PLAN CHECK INSPECTION SERVICES/ OFFICIAL
& CASP SERVICES WILLDAN ENGINEERING Community Development FY 18-19 Contract Not to
Exceed $500,000. - Shall
automatically renew for (4)
successive 1 year terms 2023
Not to Exceed $500,000 $0 2/5/2019 6/30/2023
PLANNING STAFFING SERVICES WILLDAN ENGINEERING Community Development FY 19-20 Contract - Not to
Exceed $50,000.

Not to Exceed $50,000 $27,754 1/30/2020 24 Hr. Termination Clause PLAN CHECK SERVICES INTERWEST CONSULTING GROUP, INC. Community Development FY 18-19 Contract Not to
Exceed $500,000. - Shall
automatically renew for (4)
successive 1 year terms 2023
Not to Exceed $500,000 $496,538 2/5/2019 6/30/2023
ENVIRONMENTAL SERVICES CHAMBERS GROUP, INC. Community Development Three (3) Year Contract that
started in FY 19-20, Contract
Amended to extend it to
2/7/2024 and increase it from
150K to 200K Not to Exceed $500,000 $116,788 7/1/2019 2/7/2024

EASTERN RIVERSIDE COUNTY INTEROPERABLE
COMMUNICATIONS AUTHORITY (ERICA) CITY OF INDIO Police
TOTAL 2015-2018:
$1,032,588.84, FY 2018-2019
$351,082.11, FY 2019-2020
$355,509.11 $1,739,180 $806,003 7/1/2015
Automatic Annual
renewal
ANIMAL SERVICES COUNTY OF RIVERSIDE ANIMAL SERVICES Police Billed per rate schedules $36,000 $27,921 7/1/2020 6/30/2023 GRAFFITI REMOVAL GRAFFITI PROTECTIVE COATING Police $90,000 $90,000 $48,304 7/1/2022 6/30/2023 Page 107 of 107